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HomeMy WebLinkAbout12-20-1989 COUNCIL AGENDA STAFF REPORTS` .EXECUTIVE SUMMARY NO. MEETING DATE:12/20/89 ORIGINATING DEPT.:Planning AGENDA ITEM: F48 CITY. MGR. APPROVAL 04 4? _ SUBJECT: Appeal of V -89 -039; A variance to allow two free- standing shopping center signs Applicant:Cashin; Appellant: Nader Location: 12029 Saratoga - Sunnyvale Rd. Recommended Motion: Staff recommends that the City Council deny the appeal and uphold the decision of the Planning Commission. Report Summary: The appellant is a tenant who operates the Chicken Salsa Restaurant in the Blue Hills Center. The appellant had installed numerous signs contrary to the City's sign code. In approving the design review permit and Master Sign Plan, the Planning Commission re- quired the removal of the signs as conditions of approval to which the applicant agreed. The appellant is seeking additional signage he feels is necessary to maintain a viable business in this loca- tion. However, no acceptable code conforming alternatives were ever presented for Planning Commission review. In the absence of meaningful proposals from the property owners, staff cannot recom- mend that Council modify the plans approved by the Planning Commis- sion. Fiscal Impacts: None Attachments: 1. Memo from Planning Dept. 2. Minutes 11/8/889 3. Correspondence 4. Staff Report Motion and vote: 091TT o2 §&Mk1XQ)0& 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 887 -3438 MEMORANDUM TO: Mayor & City Council DATE: 12/20/89 FROM: Stephen Emslie, Planning Director SUBJECT: Appeal of V -89 -039; Planning Commission approval of a variance and design review for center identification signs Applicant: Cashin, et.al.; Appellant: Ken Nader Location: 12029 Saratoga - Sunnyvale Rd. --------------------------------------------------------------------------------- Report Summary Application was made for design review approval to renovate the Blue Hills Center which was granted by the Planning Commission on 9/13/89. A condition of that approval required the submittal of a master sign plan for all tenants and center identification. On November 8, 1989, the Planning Commission granted sign plan approval for all tenant signs and a variance to allow two free- standing monument signs directing traffic to center entrances. The appeal was made by a tenant of the center who operates the "Chicken Salsa" restaurant who feels that the approved signage which required the removal of illegal signage is inadequate to maintain his business. Background In discussing both the design review approval for the renovation and the master sign plan, the Planning Commission expressed concerns about the illegal signs at the Chicken Salsa restaurant. As a result of these concerns, the Planning Commission condi- tioned the design review and the sign plan on the removal of the neon bars, chicken cut -outs on the equipment screen and the unauthorized yellow awning. Since the construction is proceeding to renovate the shops, all illegal signs have been removed from this restaurant. The appeal was made in response to both the City's and the property owner's attempt to gain compliance with the sign code, since the restaurant was required to remove what its operators considered to be essential business identification. Because the tenant felt that the signs approved by the Planning Commission would be inadequate for his business, appeal was made to seek Council reversal of the Planning Commission approved sign plan to allow greater identification and to allow the previous installed illegal signs. 1 Proiect Description The sign plan is composed of two elements: one tenant sign locat- ed on each store front and center identification signs. The tenant signs approved by the Planning Commission are inter- nally illuminated individual cut -out letters made of white plas- tic. Each letter is 12" in height and will be located on the soffit above each store frontage. The signs conform with the City's sign standards which allow total signage to be a maximum of 1/2 foot in area for each foot of store frontage. The monument signs are designed to identify the center and will also contain limited tenant identification. The signs are locat- ed adjacent to driveways on Saratoga - Sunnyvale Rd. and Prospect Rd., since the site has frontage on both streets. Each sign is brown concrete with white cast aluminum letters. Each sign will be externally illuminated with spot lights located in landscape planters. For comparison purposes, the monument signs are simi- lar to the Saratoga office center at Saratoga Avenue and Cox. A variance is required for the second monument sign. The sign code allows one freestanding sign for centers having five or more tenants on one site. Because the site has two distinct frontages and both signs will not be visible from the same vantage point, the Planning Commission determined that the additional sign would not detract from the character of this area. Further, the Plan- ning Commission concluded that the additional directional sign would assist drivers in locating driveways which would promote traffic safety. In considering the sign plan, the appellants did not express concerns regarding inadequate signage. The owner's representa- tive worked directly with the Planning staff and the Commission in devising acceptable sign plan. The architect represented the owners intentions to devise a sign plan that would maintain economic viability as well as meet the City objectives to main- tain a quality visual environment. At no time was the Planning Commission asked to review increased signage for the appellant's location nor was the Planning Commission asked to approve the illegally installed restaurant signs. Analysis The signs illegally installed by the tenant and now removed, are inconsistent with staff's notion of acceptable signage for this location. The site is at the entrance to the City and should be treated with a degree of sensitivity to maintain a quality ap- pearance and image. However, staff is also aware of the needs of business persons needs for adequate identification to maintain a viable concern. 2 Staff feels that the issues of the appeal relate to site specific concerns which the Planning Commission was not asked to address. Although the Master Sign Plan and variance was approved and the renovation is currently underway, denial of the appeal will not preclude the tenant and the owner from devising an acceptable sign plan for presentation to the Planning Commission. Because no specific signs other than the ones installed without permits have ever been submitted, staff is unable to recommend that the Council uphold the appeal and grant any deviation from the Plan- ning Commission's Master Plan. Recommendation In the absence of a specific proposal for alternative signs for the appellant's storefront, staff cannot recommend reversal of the Planning Commission decision to grant the variance and the Master Sign Plan. Step en ERfslie Planning Director SE /dsc Attachments 3 r PLANNING COMMISSION MEETING NOVEMBER 8, 1989 PUBLIC HEARINGS ontinue Commissioner Kolstad stepped down on the following item. Page 11 16. V -89 -039 Cashin, 12029 Saratoga - Sunnyvale Rd., request for sign program approval and a variance from Ordinance 15- 30.100 to allow two free - standing signs on the site where only one is allowed. The property is located in the C -N zone district. -------------------------------------------------------- Planner Graff presented the Report to the Planning Commission dated November 8, 1989. Commissioner Moran reported on the land use visit. The Public Hearing was opened at 9:32 p.m. The Applicant was present to respond to questions. Commissioner Harris stated she had a concern about the signs at the Chicken Salsa Restaurant. The Applicant stated that they are attempting to restrain the Chicken Salsa owners but they are not cooperating and requested support from the City to deal with Chicken Salsa. City Attorney Toppel asked the architect to relate to the owner that as far as the City Attorney's Office is concerned the banner is illegal, and the City would begin to issue citations and begin prosecuting. Commissioner Moran asked about the yellow awning placed on the building. City Attorney Toppel said that the awning could be viewed as a decorative feature because there is no writing on it. If the Commission wants to prohibit the awning, he suggested that it be covered in the sign program. Planning Director Emslie stated that the awning was reviewed. The awning was installed after the remo, direct violation of the exhibits that were approved in a misdemeanor violation of the Municipal Code. Toppel made numerous requests and have visited the been unsuccessful in having the banner removed. not covered when the permit was Jel work was approved and is in by the Commission which results He said he and City Attorney owner of the business and have City Attorney Toppel said he would discuss the matter further with Planning Director Emslie. He said that in Item 16 a specific reference should be made to °,�.el de- banners and awnings.X Chairperson Siegfried requested that a letter be sent to the Applicant and to the restaurant owner. City Attorney Toppel suggested that a citation be issued the next day since the City has already told him to take down the banner. HARRIS /MORAN MOVED TO CLOSE THE PUBLIC HEARING AT 9:37 P.M. Passed 5 -0. PLANNING COMMISSION MEETING Page NOVEMBER 8, 1989 PUBLIC HEARINGS Co ntinued HARRIS /BURGER MOVED TO APPROVE V -89 -039 PER THE MODEL RESOLUTION ADDING THAT SAFETY WILL BE IMPROVED AT THE INTERSECTION AND THAT ALL SIGNS AND BANNERS WILL BE fin. Passed 5 -0. Commissioner Kolstad was reseated on the Commission. DIRECTOR'S ITEMS: 1. Memorandum cancelling the Planning Commission meetings of 11/22/89 and 12/27/89. 2. Upcoming planning applications and projects. COMMISSION ITEMS: 1. City Council Report Commission Tappan reported on the City Council Meeting of November 1, 1989. Planning Director Emslie requested that the Commission adjourn the meeting to the Study Session of November 28 in order for the Commission to take action to approve the variance on the Vel ensk}�property; a Public Hearing will be advertised. COMMUNICATIONS: // Written: 1. Heritage Preservation minutes from 10/4/89 Oral by Commission: Chairperson Siegfried noted that this was Planner Graff's last meeting. Chairperson Siegfried acknowledged Planner Graff and thanked him for his good work. ADJOURNMENT: The Meeting of the Planning Commission was adjourned at 9:50 P.M. to November 28, 1989. Respectfully submitted, J& Rebe ca S. Cuffman Data Received: 11-Z�l Hearing Date : 12,-2°'`,'9 Fee�� CITY USE APPEAL APPLICATION Name of Appellant: Address: �%f�� �l�Pisl� /1.5 �� •��S 2-5 3 -- Telephone: Name of Applicant:S Project File No.: Project Address: ?;�� Project Description: _ ✓�- �S�.�' C L�� Decision Being Appealed: ���u,LUzo ror the Appeal (Letter may be attached) : j Pe ant s ignature *Please do not sign this a City offices. If pplication until it is presented at the you wish specific appeal please list theca on a separate sheetto be notified of this TITS APP? „iC,%TTON MUST DI. SUMMED 11TVIIN TEN 10) CALL•r1DAR DAY I L 11' L- U• E U L- lr�$ I S O r 0. of SSA R 1:3777 FRUITVINLE ,-VENUE . SAR,vTOGA. CALIFORNIA 95070 14081 867-3438 COUNCIL MEMBERS: Karen Anderson Martha Clevenger Emmett Cashin David Moyles 950 Tower Lane Donald Peterson 20th Floor Francis Stutzman Foster City, CA 94404 ATTN: Vince Dear Mr. Cashin: Please be advised that the Planning Commission's approval of your Design Review Permit (DR -89 -055) is conditioned on the removal of signs currently in violation of the City Code. Specific refer- ence was made by the Planning Commission to remove the following sign and design violations at tenant currently conducting busi- ness as "Chicken Salsa": 1. the neon signs in the display windows; 2. all banners displayed on the building exterior including the banners attached to the construction scaffolding; 3. the chicken logo displayed on the equipment screen located on the roof; 4. the yellow awning on the north elevation. Failure to comply with the Planning Commission conditions will mean that the construction of the project will be order to stop until the center is brought into conformance with the City's Sign and Design standards. Furthermore, your sign program recently approved by the Planning Commission has been appealed by the tenants of the "Chicken Salsa". Until the appeal is heard and qecided by the City Coun- cil at its December 20th meeting, no gns can be installed for any tenant. S' ere , /�� Step en slie Plannin Director REPORT TO THE PLANNING COMMISSION FROM Tsvia Adar DATE 11/8/89 PLNG. DIR. APPRV. APPLICATION NO. & LOCATION: V -89 -039, •12029 Saratoga - Sunnyvale Rd APPUCANT /OWNER: Cashin APN: 366 -22 -022 Q N II � File No. V -89 -039; 12 9 Saratoga - Sunnyvale Road EXECUTIVE SUMMARY CASE HISTORY: Application filed: 10/5/89 Application complete: 10/14/89 Notice published: 10/25/89 Mailing completed: 10/19/89 Posting completed: 10/20/89 PROJECT DESCRIPTION: The applicant requests a sign program approval for Blue Hills Shopping Center, in the C -N zoning district. As part of the program, the applicant also requests variance approval from Ordinance 15- 30.100, to allow two free standing identification signs where only one is allowed on a single site. The proposed sign program and free standing signs were continued from the 9/13/89 Planning Commission meeting. The proposed signs were presented to the Committee -of- the -Whole at 10/3/89. The Commission was satisfied with the proposed program and the free standing signs. PROJECT DISCUSSION: The proposed signs on the building fascias comply with the sign ordinance and is compatible with the character of the shopping center and the signs in other shopping centers within the City. The proposed free standing signs are located Saratoga - Sunnyvale Road and Prospect Road, a gasoline station and identify different uses. conditions which can be grounds for variance standing signs on a single site. Staff is required variance findings. on different streets, nd are separated by the These are exceptional approval for two free able to make all the STAFF RECOMMENDATION: Approve the proposed sign program and the variance applications by adopting Resolution V -89 -039. ATTACHMENTS: 1. Staff Analysis 2. Resolution V -89 -039 3. Specification for lighting features and style of letters for the free standing signs. 4. Plans, Exhibit A kim3 File No. V -89 -039; 12, 9 Saratoga - Sunnyvale Road STAFF ANALYSIS ZONING: C -N GENERAL PLAN DESIGNATION: PDM PARCEL SIZE: 2.5 acres AVERAGE SITE SLOPE: 2% MATERIALS & COLORS PROPOSED: Sign on Building Fascia: Materials: aluminum, translucent plastic Size: 12 in. high Color: white face /bronze aluminum housing Freestanding Signs: Materials: concrete with sand blast texture for Surface mounted cast aluminum letters. Size: 6 in. high; 7 1/8 in. wide Color: White sign bases. PROJECT DESCRIPTION: The applicant proposes a sign program for Blue Hills Shopping Center. The program includes signs on the fascia of the retail building and two free standing signs. No signs are proposed on the office building fascia. The identification signs on the building consist of individual internally illuminated letters affixed to the fascia. The proposed materials are bronze aluminum housing and white translucent plastic for the face of the letters. The letters are 12 in. high. This type of sign is typical of other shopping centers in the City, and is compatible with the building character. The freestanding signs are proposed to be located, at Saratoga - Sunnyvale Road and the other at Prospect Road. The sign at Saratoga - Sunnyvale Road will identify Blue Hills Shopping Center and Fox and Carskadon name and logo. The sign at Prospect Road will include the name of the three tenants in the office building. Both signs will have a concrete base, brown color, with cast aluminum letters mounted on the concrete surface. The concrete base is proposed to be treated with light sand blast texture. The illumination of the signs will be external. The proposed signs are compatible with the character of the shopping center in materials and colors and will not stand out. Staff recommends the planting of small shrubs and flowers around the sign bases to blend the signs with the landscaping. File No. V -89 -039; 12u -9 Saratoga - Sunnyvale Road Although the proposed lighting for the free external and are not expected to result in ex, recommends the Planning Commission review installment of the light features and have the reduction in the light intensity if necessary. requirement was incorporate in the resolution. standing signs are :essive glare, staff the sign after the authority to require A condition for this The proposed signs are compatible with the character of the signs in other shopping centers within the City. Except for the variance for a second monument sign, the proposed signs meet with all the City's sign regulation and comply with the sign criteria pursuant to Ordinance 15- 30.070 to the City Code. RECOMMENDATION: Approve the requested sign program and the variance application for a second free standing sign by adopting Resolution V -89 -039. SARATOGA CITY COUNCIL EXECUTIVE SUMMARY NO. r7__n1 AGENDA ITEM MEETING DATE: December 20, 1989 CITY MGR. APPROVAL ORIGINATING DEPT: Community Services SUBJECT: Development of Draft "Party Ordinances" for Saratoga Recommended Motion: In accordance with the recOmmendations of the Commission, direct the City Attorney to pre Public Safety after the Los Gatos Town ordinances relating e �'�° draft ordinances modeled and second police re creating juveniles i possession of alcohol to the Public Safety COnr issionpfor1forwaardin a public nuisance; to be presented g � the City Council. Report Summary The team "Party ordinance" was coined to describe locally developed ordinances dealing with parties (primarily but not exclusive out of hand, -and ultimately create a public nuisance juvenile in nature) which get repeated attention from law enforcement i times, the a state of well being. Aware that many oth r California return cities lghborry°°d to in Santa Clara County) had adopted such (including some sion identified the issue as one they would party ordinances, Public Safety Comrtis- their' January, 1989 retreat. In re Program at Commission spouse � City Council direction in June, the began actively pursuing the matter. The Commission then reviewed statistical information from the Sheriff's Office and concluded that Saratoga did have a problem with juvenile parties (especially those involvin the cons of alcohol), In October., Police Chiefs from Santa Clara valley cities which have Party ordinances were .cited to attend the Commission's meeting to discuss the development and application of the ordinances within their jurisdictions. In November, the Commission decided to recommend the developrent for Saratoga modeled after ordinances already Ios of a party ordinance The first ios Gatos ordinance creates a civil mechanism whereby s Gatos. its costs for responding to a party a second time the at t can collect Police services are functioning in effect as private security forcesa for the party which should not be financed by the taxpayer. The second ordinance misdemeanor for any juvenile to consume alcohol unless he /she is undeetheldirect supervision of his /her parent or guardian, The Public Safety ccamuission found that there is substantial concern in the Saratoga Community regarding juvenile substance abuse (as evidenced Not only do juvenils disrupt the peace a by the attached petition). their parties get out of hand tranquility of local, neighborhoods when to the public safety of local, r sideenntus and l to Sar � a significant threat Once the City Attorney has prepared the draft ordinances by the Coinnisssion and then Presented to the City Council durriingra publicvheeaarring for final consideration. Fiscal Ism act: Should the above - referenced o hearing, an um}Qxwn revenue savin s in fiances be adopted at a future public recovery of costs for second re ous g the Sheriffs budget may result through the in the number of parties r squir spes to parties together with a possible decrease ing the attention of the Sheriff's Office. . EXE CCT= SUNDRY NO. SUBJBC'T: Developimelt December 20, 1989 Paqe 2 of Draft "Party ordinances,, for Saratoga Attachments: 1. Excerpt from the November Public 2. Los Gatos Ordinance #1 3. Los Gatos Ordinance #2 4. Summary comparing Party Ordinances 5. Petition presented to Public Safety signatures encouraging Saratoga to Motion and Vote: )60�- Safety Commission Meeting Minutes in other jurisdictions Ccamission in October containing 129 adopt a party ordinance. PSC Minutes - 11/13/89 Page 7 Problem. He did not believe it did. Co®. Long greed with Com. Crane indicating that he didn't think that th a was a safety Problem* at that intersection because of the h dge, either. The Commission agreed that the intersection in intersection that now has a stop sign prese t•estie o a ��on concluded that there is very little tr fic The Commission slowly, and traffic must stop at the sto sign. ' e moves very stop sign can see clearly in both direc ons . People to the tion were instead a yield rather than a to If the 'intersec- tion would.be entirely different. p, their view of this MOMO : It was moved /seconded r in as much as all members y Com' O'Rorke /Crane that, visit- ed the site and had rea edasconclusion that had safety problem really does no exist at this section because of Mr Heid's hedge, the rPSC urecommends that the City take o further enforcement actions this matter; provi d, however, that Mr. Heid trims t1, in hedge down to 6 eet on the top and 18 inches on the side (removing i from the sidewalk) within the neat 361"1 days. Motion pass 9d by unanimous vote. As an additional te, the Commission wanted to commending Mr. Do se and Mr. Nottoli for the go on record in this matter. The Commission wanted to emphasize y that done staff should p oceed with the enforcemen t of matters such as t these, and th Commission would be available to review unique circumstances, as exists with regard to Mr. Heid's situation, whenever re qu sted to do so. Stop Si ns 0 G as ow Drl� and g2= At Mill_ Drive: Mr. A'g presented the Commission with a re nearing staff recommending that on signs ort from the engi- Glasgo Drive and Glasgow Court at their gintersectionlwithnMiljeh bot vich ive. / MMQTIM: It was moved /seconded by Com. O'Rorke /Swanson that the Saratoga PSC supports the staff recommendation to install the stop signs Drive. on Glasgow Court and Glasgow Motion passed by unanimous vote. .._�> COST RAqQVnX pgASIBI M UM (PARTIES): Chairman Borah announced to the Commission that t finally come for the Commission to formalize recommendations had the City Council conceraing whether or not the City should devel- op a party ordinance, and if it should, what form that ordinance should take. The Chairman noted that there were members of the public present to address the Commission on this issue. ,e� PSC Minutes - 11/13/89 Page 8 Mr. Brooks indicated that he was at the meeting to see what the Commission's thoughts were on the issue. He had worked with the Community Against Substance Abuse (CASA) group on the matter, and was very anxious to see some action taken in that regard. He had reviewed the minutes from the last PSC meeting, which he felt were very informative and detailed, and provided him with a lot of background information on the issue. He had some concerns about the Los Altos ordinance and the comments made at the last meeting (as reflected in the minutes) that the Town of Los Altos does not feel they need a second response ordinance because they attempt to stop parties during the first response. He felt Saratoga should also attempt to stop unruly parties at the first response, but felt that a second response ordinance was very necessary as a backup mechanism. Mrs. Bowman indicated that she had attended the October meeting. of the Commission, and the Commission was already acquainted with. her feelings on the matter. She reminded the Commission that s �ie,..... had brought the petitions with 160 naves on them which supported;; the development of a party ordinance. She felt that the Commis sion had done an excellent job on thrashing out the issues associated with the feasibility of developing a party ordinance, and was anxiously awaiting their final action. Com. Swanson indicated that he preferred the two ordinance ap- proach used in the Town of Los Gatos. He felt that the City needs to give the Sheriff's Department additional tools to handle unruly parties. Com. O'Rorke agreed with Com. Swanson, and added that the implementation of the ordinance was very important in terms of the use of discretion in the field. Chairman Borah asked Mr. Argow if the two ordinances such as those found in Los Gatos could be combined into one ordinance. Mr. Argow responded by saying that the two ordinances would have to be kept separated because they relied on two different provisions of law. The Los Gatos ordinance making it a crime to be a minor and in possession of alcohol relied on criminal enforcement; specifically, the crime was a misdemeanor which was a very serious offense. The Los Gatos second response ordinance, on the other hand, relied on civil law concerning the collection of fees resulting from the City resources spent in responding to an incident a second time. Mr. Argow recommended that the Commission not address detailed language for an ordinance at this time. Rather, he recommended that the Commission indicate to the City Council whether or not they felt a party ordinance was appropriate in Saratoga, and identify a model ordinance which would represent their preferred approach. The City Council would then direct the City Attorney to develop specific language for such an ordinance (or ordi- nances) and would run that specific language by the Commission assuming that the City,,Gvuncil concurred with the PSC's recommen- dation. ,t" . 1. PSC Minutes - 11/13/89 Page 9 At this point there was some discussion concerning how t criminal aspect of a Los Gatos -like ordinance would be appliedto Saratoga! homeowners who were absent at the time of a given part Mr. Brooks in particular expressed concern that a fine is a very serious offense, and could car misdemeanor months in jail. ter, carry with it up to six discretion in the fieldo~sPVinted out that this is an area where Town of Los Gatos ordinance makes it very diffhicultntoage in the such individuals unless there is a clear indication of substan- tial negligence on the prosecute rea- sonable cause to believeathatfathe homeowner, and they had sence. Chairman Borah felt that these kinds ofc details tshould abe worked out with a draft ordinance if the Council endorses a recommendartion8efrom b the the Commyissionrnto Proceed ahead.in this matter. NO -TION: It was moved /seconded b Con. that the PSC recommends that the CityanCouncil di =ane the City Attorney to prepare a two -part ordinance.';" Patterned after that which already exists in the Townie" - of Los Gatos but particularized for Saratoga, and send that draft back to the ?SC for further review. Motion passed by unanimous vote. Mr. A.rgow informed the Commission that Councilwoman.Anderson had called him and requested that he relay an idea to the Commission for further consideration. She wondered what the Commission thought about the idea of having the City host a large party for Saratoga youth if the vandalism statistics in Saratoga dro b two - thirds during a one year period. She has suggested y e underwrite the. costs for this party, which would beehelde onita closed off portion of Allendale Avenue near City Hall to express the community's appreciation for ' the lowered vandalism statistics. She felt that such an incentive might be a motivat- ing factor to encourage peer pressure on the lower the rate of vandalism in Sarato a, part of youth to Commission thought about the idea. g She wondered what the Con. Swanson indicated that he had heard of such an approach being tried in a small city in Idaho. Both he and the other Commissioners felt that such an idea might work for a small locally - defined population such as the students at a specific school or the youths from a specific neighborhood, but were doubtful as to whether such an approach would be as effective When implemented on a cit the possibility that they -wide basis. They indicated there was youth of the comeunity might react in the opposite way, y, recognizing that the City was attempting to use peer pressure to achieve its vandalism reduction objec- tives. However, the Commission also agreed that the i tainly, has some merit,•and would be worth further studdea cer- would keep the idea in mind, and possibl y. they continue to deal with the pa y modify to rty problem in the future. y PSC Minutes - 11/13/89 gg= SCE $$PORT: Page 10 Com. Swanson informed the Commission that Karen Franza, the Vice Principal of Saratoga High School, had and was now Karen Hyde. Mrs. Hyde was also recently married but indicated she planned on continuing on at Saratoga che g School in her existing job after the baby as born. S High informed Com. Swanson that she, and the administration of Sarato- ga High School, were very She had ties. Saratoga High School shas obeenetrflnhe PSC actions on to- way of administering • .. ,. trying to find an effective the liability g a pr °gram while effectively dealing with regards. to the Boy uScout seofhAmericallY found a solution with they have informed an Explorer Scout TroopSwhich, as its Project, is handling the coordination of the Safe Rides Program for the school. The Boy Scout Troop is covered b q insurance for the projects it undertakes by National Scouts Of America; hence, the resolution of the liability issue. Y Scouts In an unrelated matter, she felt that the City's Youth Commissi ;± ' could provide an activity for Saratoga high school -a e developing and supporting y idea be transmitted toltheaYouthlComsissioo for their g d youth by She asked that this tion. considera- NEIGHBORHOOD W RB_ SORT: The Commission noted that there were no new neighborhood watch areas being proposed for consideration. tch frustration at the difficult in They expressed some established in the ffi Y getting neighborhood watch areas things they have done City. They reflected on all the different and felt the issue of neighborhood IIewatchrshhoulwatch in Saratoga, attention at their next annual retreat is January, given a lot of CSO R POR : Mr- Argow reported that the CSO's spent the biggest their time on code enforcement matters. g chunk of EM M RQQJM ORDI ar��. There was considerable discussion concerning the fire safe roof- COS. ordinance issue. Ca, f Council meeting on October 18,r where ptheeCouncil approved of the ing the ordinance on a vote of 3 to 2. pproved adopt- ing, however, the Council changed its At the cause t 1 meet- ing on October 18 was within one day of theimajo =cea =ththe meet - many Saratoga residents may not have had the Opportunity and and express their vierfs on this matter according to the Saratoga -Los Gatos Real'Sstate Board pPortunity to come Council wanted to hear as much citizen inputdast� Because the matter, they had scheduled it for a study session on November 28, Possible on the 1989, at which they would seek additional citizen input on the matter. Chairman Borah emphasized the importance for the Commis- .v a d ORDINANCE NO: ORDINANCE OF THE TOWN OF LOS GATOS ENACTING SECTION 17 -43 OF THE TOWN CODE OF LOS GATOS PERTAINING TO SECOND POLICE RESPONSE THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I Section 17 -43 of the Los Gatos Town Code is enacted to read as follows: Section 17 -43. Disturbance requiring a second police response. When a disturbance occurs at a premises and a police officer at the scene determines that there is a threat to the public peace, health, safety or general welfare, the person in' -charge of the premises and the person responsible for the event, or if either of those persons is a minor, then the parents or guardians of that minor, will be held jointly and severally liable for the cost of providing police personnel on special security assignment over and above the services normally provided by the department. The police personnel utilized during a second response after the first warning to control the threat to the public peace, health, safety or general welfare, shall be deemed to be on special security assignment over and above the services normally provided. The costs of such special security assignment shall include the costs of police response, damage to Town property and injuries to Town personnel. SECTION II All other ordinances and parts of ordinances in conflict herewith are hereby repealed. SECTION III This ordinance shall not impose a requirement of a second response by police to a disturbance where a determination is made that termination of the disturbance is necessary on the first response to keep the peace and ensure the health, safety and general welfare of the public. The fees imposed for a second response to such a disturbance will be established by the Town Council by Resolution. SECTION IV This ordinance shall take effect and be in full force thirty. (30) days from and after it is adopted. Within 15 days after this ordinance is adopted the Town Clerk shall cause it to be published once in a newspaper of general circulation published and circulated in the Town. This ordinance was introduced at a meeting of the Town Council of the Town of Los Gatos on , 1989 and adopted by the following vote as an ordinance of the Town of Los Gatos at a meeting of the Town Council of the Town of Los Gatos on , 1989. AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS ABSTAIN: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS SIGNED: I MAYOR OF THE TOWN OF LOS GATOS ATTEST: CLERK OF THE TOWN OF LOS GATOS r• RESOLUTION NO: 1989 -51 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING A SCHEDULE OF FEES FOR SECOND RESPONSES BY THE LOS GATOS POLICE DEPARTMENT TO INCIDENTS CAUSED BY DISTURBANCES RESOLVED, that there be imposed fees for the Police Department service as follows, and amending Resolution No. 1988 -26, WHEREAS, the Town of Los Gatos strongly supports efforts in reducing the number of responses to disturbance parties involving the use of alcohol and /or drugs in the Town of Los Gatos, and, WHEREAS, the Town of Los Gatos expends considerable monies each year in the response and investigation caused by these disturbances and Government Code Section 38773 allows the recovery of these costs by local agencies, RESOLVED, by the Town Council of the Town of Los Gatos that-there be imposed fees for services including second responses caused by disturbances as follows: Hourly Rate for Patrol Officer . . . . . .$83.22 Per Minute Rate for Patrol Officer . . . .$ 1.39 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 17th day of April , 1989 by the following vote: AYES: COUNCIL MEMBERS Eric D. Carlson, Thomas J. Ferrito, Robert L. Hamilton. Mayor Joanne Benjamin NOES: COUNCIL MEMBERS ABSTAIN: COUNCIL MEMBERS a ABSENT: COUNCIL MEMBERS Brent N. Ventura I SIGNED: /s/ Joanne Benjamin MAYOR OF THE TOWN OF LOS GATOS ATTEST: /s/ Marian V. Cosgrove (seal) CLERK OF THE TOWN OF LOS GATOS Defendant Case Number r TOWN OF LOS GATOS Los Gatos Police Department DISTURBANCE SECOND RESPONSE Date Time LABOR COSTS Names os Officers I Times Tasks Performed Start I Finish i Total I I I I I I I I I I ( l I I I I EQUIPMENT Special Equipment: Specify Other: X $ = $ Hours TOTAL BILLING (Labor and Equipment) $ Supervisor /ID# -------------------------------------------------------------------------- Patrol Officer rate per minute $1.39 (effective 1 1) All computations for reimbursement will be total minutes multiplied by the per minute rate. cc Case Report Audit file Finance (Cost Analysis) 7/88 TO: FROM: DATE: T 0 W N O F L 0 S G A T 0 S Finance Administrator Police Department SUBJECT: Cost Recovery - Request for billing Government Code 38773- Nuisance ** Damage to Town Property Name and Address of Person to be Billed: Phone: Business Nome Case Number Date of Court Disposition (if applicable) CEN # AMOUNT TO BE BILLED -------------------------------------------------------------------------- * *Answer questions below if Town Property was damaged: 1. What property was damaged? 2. What happened to cause damage? 3. When was property damaged? 4. Location of occurrence? Form completed by 5/88 (Billing Notice) ORDINANCE NO: 1791 AN ORDINANCE OF THE TOWN OF LOS GATOS ENACTING SECTION 17 -44 OF THE TOWN CODE OF LOS GATOS PERTAINING TO PERSONS UNDER THE AGE OF 21 WHO POSSESS OR CONSUME ALCOHOLIC BEVERAGES ON PRIVATE PROPERTY NOT OPEN TO THE PUBLIC. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN: SECTION I Section 17 -44 of the Los Gatos Town Code is enacted to read as follows: Section 17 -44. Certain Social Gatherings Unlawful. (a)' No person under the age of twenty -one years shall have in his or her possession or consume any alcoholic beverage at any place not open to the public, unless that person is being supervised by his or her parent or legal guardian. (b) No person shall suffer, permit, allow or host a social gathering at his or her place of residence where one or more persons under the age of twenty -one (21) are present and alcoholic beverages are in the possession of, or being consumed by, any person under the age of twenty -one years; and there is no supervision by the parent or legal guardian of each of the participants under the age of twenty -one. (c) Any person violating this section is guilty of a misdemeanor. SECTION II This ordinance shall take effect and be in full force thirty (30) days from and after it is adopted. Within 15 days after this ordinance is adopted the Town Clerk shall cause it to be published once in a newspaper of general circulation published and circulated in the Town. This ordinance was introduced at a regular Town Council of the Town of Los Gatos on April 17, meeting of the the following vote as an ordinance of the Town of Los Gatos atria adopted by meeting of the Town Council of the Town of Los Gatos on -- May 1 1989. AYES: COUNCIL MEMBERS Robert L. Hamilton Thomas J. Ferrito Ma or Joanne Benjamin NOES: COUNCIL MEMBERS ABSTAIN: COUNCIL MEMBERS Brent N. Ventura ABSENT: COUNCIL MEMBERS Eric D. Carlson SIGNED: LUS GA 105 ATTEST: / � s AWE -2- Charqes: Calculations for Second Response Fees Santa Clara: Hourly direct costs + fringe benefits + overhead = 59C to 76C per min. + any damage to City property Gilroy . Hourly direct costs + fringe benefits + overhead; No actual calculations given;rany damage to City property Los Gatos . Hourly direct costs + fringe benefits + overhead = $1.39 per min. + any damage to City property Alameda : Hourly direct costs + fringe benefits + overhead; No actual calculations given;♦ any damage to City property San Fernando: Hourly direct costs + fringe benefits + overhead; No actual calculations given;rany damage to City property Alcohol & Minors (contrasting Los Altos & Ins Gatos Ordinances) The Los Altos Ordinance makes it unlawful for adults to serve alcohol to minors in their homes under all circumstances. Z Los Gatos Ord. #2 allows alcohol to be served as long as each minor is under direct supervision of her /her parent or guardian. CCYNPARISCN CF "PARTY ORDINANCES" FRCM OTHER JURISDICTICNS Effective Applies to: Time Applies to: Party Size Adult Supervision Fee /Fine City /Agency Date of Ord. 1st response 2nd response Period Adults Juveniles Minimum Required? Charged Santa Clara 4/1/88 Warning Cite Within Yes Yes 3 or more No Fee varies. 12 hours persons Charged by minute to max. of $750. Ins Altos 2/28/89 Cite N/A N/A No Yes 10 or more N/A Fine /or infraction ($100 - $500) Gilroy 1/4/88 Warning Cite Not Yes Yes Not stated No Fee varies. stated Charged by minute to max. of $500. Ins Gatos 5/1/89 Warning Cite Not Yes Yes Not stated No Fee varies. Ord. #1 stated Charged by minute, no max. Los Gatos 5/1/89 Cite N/A N/A No Yes One or wore Yes Fine /or misdemeanor Cam. #2 ($1,000 max. and /or jail) Alameda County 3/28/89 Warning Cite Not Yes Yes Not stated No Fee varies. stated Charged by minute to max. of $1,000. San Fernando 11/7/88 Warning Cite Within Yes Yes Not stated No Fee varies. 12 hours Charged by minute to max. of $500. Charqes: Calculations for Second Response Fees Santa Clara: Hourly direct costs + fringe benefits + overhead = 59C to 76C per min. + any damage to City property Gilroy . Hourly direct costs + fringe benefits + overhead; No actual calculations given;rany damage to City property Los Gatos . Hourly direct costs + fringe benefits + overhead = $1.39 per min. + any damage to City property Alameda : Hourly direct costs + fringe benefits + overhead; No actual calculations given;♦ any damage to City property San Fernando: Hourly direct costs + fringe benefits + overhead; No actual calculations given;rany damage to City property Alcohol & Minors (contrasting Los Altos & Ins Gatos Ordinances) The Los Altos Ordinance makes it unlawful for adults to serve alcohol to minors in their homes under all circumstances. Z Los Gatos Ord. #2 allows alcohol to be served as long as each minor is under direct supervision of her /her parent or guardian. SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. TITESE ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS PARTY ORDINANCE pg. 2. NAME ADDRESS PHONE VL cl� CJ74�� CITY OF SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. THESE CITY ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS ORDINANCE pg. 2. NAME ADDRESS Tam 13�Z4 !�5 0QD Mal r _ M0.. PHONE 7— G Y73 -- _-> e--;:) _R6 2- 733-0 �A 7 7 -,f 3 �✓ e SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. THESE ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS PARTY ORDINANCE pg. 2. NAME ADDRESS 1 �dir�rx— _IYlo�l_ PHONE _/,/ 7 - IoO� _. 4 A -- - - - -2-0- 2-2, 5 c th e- 7 zll �4��o�_g6'I oilk G 7_- c y.,a [-- -- `7 LP CITY OF SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. THESE CITY ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS ORDINANCE pg. 2. NAME ADDRESS PHONE Ly` I4�2;L.1 RC �tVVVl �.,-� - '3:L �:�Z Sri _ � _ / • , I' • . u ' 2/4. TOEaA Z� -1, -7 SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS' GATOS AND LOS ALTOS. THESE ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS PARTY ORDINANCE pg. 2. NAME ADDRESS PHONE 76 1 4618 . llr_clf�c 12.9 0- z/ Zli A d CITY OF SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. 4 THESE CITY ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS ORDINANCE pg. 2. NAME -7l� lsl lac U /10a 7U jtkx-- I� ADDRESS PHONE alt � �.o23v �c ✓�.��.�.� U � / L l 717 -D 17 Iz 411 ,cam -7 5` �co yd �� a� ppyy O(ri7�7! /7j { ,� � 0 ),1 �� - �' � J-J A�&N40 i CITY OF SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE r# it I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. THESE CITY ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. NAME *See the LOS ALTOS ORDINANCE pg. 2. ADDRESS G� PHONE 'J 1 J �r -,�37 7y ( , (,� -ca, s/? ?� ( -L4 0 Y(c7- =7i`- g6-7 - 7(f)c >C, nl r o?a3Vu V J CITY OF SARATOGA JUVENILE ALCOHOL PARTY ORDINANCE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. THESE CITY ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS ORDINANCE pg. 2. NAME ADDRESS PHONE CITY OF SARATOGA JUVENILE ALCOHOL PARTY ORDINAl`ICE I WOULD LIKE TO HAVE SARATOGA CITY COUNCIL CONSIDER PASSING A "PARTY ORDINANCE" SIMILAR TO THOSE ADOPTED BY LOS GATOS AND LOS ALTOS. THESE CITY ORDINANCES WERE PASSED TO DISCOURAGE UNSUPERVISED JUVENILE ALCOHOL PARTIES. *See the LOS ALTOS ORDINANCE pg. 2. NAME ADDRESS PHONE ?22�, 1g4� Ak r Z 1`= r r r Z 1`= -t 1 1►. EXECUTIVE SUMMARY NO. /'-/ 5 2— MEETING DATE:12 /20/89 ORIGINATING DEPT. :Planningt AGENDA ITEM: 84 CITY. MGR. APPROVALJ6) fee SUBJECT: Appeal of V -89 -043; Applicants /Appellants: Ira & Mayumi Velinsky Location: 15839 Hidden Hill Rd. Recommended Motion: Staff recommends that the City Council uphold the appeal and reverse the Planning Commission's decision and grant the variance by determining the necessary findings are present. Report Summary: The applicants are appealing the Planning Commission's denial of the variance on the basis that City Council conditions of its design review approval requires variance approval. In considering the request, the Planning Commission was unable to determine there were extraordinary conditions that distinguished this property from others in the neighborhood, and was, therefore, unable to grant the variance. The applicants are seeking redress by the Council as the request conforms with plans approved by the City Council. Fiscal Impacts: None Attachments: 1. Memo from Planning Dept. 2. Planning Commission Staff Reports 3. Minutes excerpts from Planning Commission 11/28/89 meeting Motion and Vote: 1 1 (Dguw O 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 867 -3438 MEMORANDUM TO: Mayor & City Council DATE: 12/20/89 FROM: Stephen Emslie, Planning Director SUBJECT: Appeal of V -89 -043 Applicants /Appellants - Ira & Mayumi Velinsky Location - 15839 Hidden Hill Rd. Report Summary The applicants have appealed the Planning Commission's denial of their variance request. The appeal is based on the Council's requirement in granting design review approval which required the variance for front yard setback. Because a majority of the Plan- ning Commission felt that conforming alternatives which were compatible with the neighborhood were available, the Commission was unable to make the necessary findings to grant approval. Background Since the project has recently been before the Council on appeal, the salient issues are well known. The City Council will recall from the conclusion of its design review hearings several changes were requested by Council and executed by the applicant: 1) the garage was reduced to two cars; 2) the swimming pool was elimi- nated from the plan; and 3) the parking area within the ravine was deleted. The Council's resolution adopted to approve the design review permit included an Exhibit which reflected these changes. In addition, the exhibit was also.revised to eliminate the need for the side yard variance as the proposed structure now complies with the 20 ft. yard requirement. The site plan which was identical to the Council exhibit was submitted for review by the Planning Commission at a public hearing on November 28, 1989 when the variance was considered. The Planning Commission's hearing included testimony from neigh- bors as well as the applicants and their architect. Neighbors testified that the variance should be denied because the findings were not present to deviate from City standards. Rather than approve a variance, neighbors urged reduction in the house size as a means to achieve code compliance. In addition, neighbors questioned the location of the staking put on the site by the 2 1: applicant. The neighbors also presented copies of CC &R conditions that limit encroachment into yard areas and asked if the City can enforce these conditions. In response, the Planning Commission responded that CC &Rs are agreements between private property owners which the City may not enforce. Nevertheless, individual homeowners may elect to enforce CC &R conditions by bringing a civil action independent of the City. The Planning Commission discussed the presence of necessary findings to grant the variance. Essentially, the major point of departure between the majority and minority viewpoints was the questions of exceptional site conditions. The Planning Commis- sion majority felt that the topography of the site was not unusu- al and that a code conforming home could be constructed with less of an impact than the Council revised plans. The Planning Com- mission minority felt that the ravine which encompassed 50% of the site indeed constituted an extraordinary physical site condi- tion that justified granting the variance in order to avoid intrusion into this natural landform. Staff recommended that the variance be granted due to the presence of the ravine. This recommendation was essentially made to the Planning Commission when the design was initially ap- proved. Further, staff's recommendation to the Council when the appeal was considered was based on findings staff felt were present to grant the deviation from setback standards. Findings As the Council is aware, it is encumbent upon the City to deter- mine several findings prior to granting authorization to deviate from zoning standards. The following findings are required to grant the variance requested by the applicant: 1) The variance is necessary because of special circum- stances applicable to the property, including size, shape topography, location or surroundings, strict enforcement of the specified regulation, would deprive the applicant of privileges enjoyed by the owners of other properties in the vicinity and classified in the same zoning district. Discussion: Due to the unusual topography, a 40 ft. deep ravine, which bisects this property, the suitability uncon- strained building site lies in the northeast corner of the property which requires a setback variance in order to develop a home comparable to other in the neighborhood. 2) The granting of the variance will not constitute a grant of special privilege inconsistent with the limitations on other properties in the vicinity and classified in the same zoning district. 3 Discussion: Because other property owners in the zone district enjoy single family homes on property similarly sized, the applicant is merely enjoying a property right commonly seen throughout the neighborhood. The variance is required to enable the applicant to locate a home comparable in size by Saratoga standards in the most unobtrusive loca- tion. 3) The granting of the variance will not be detrimental to the public health, safety or welfare, or materially injuri- ous to properties or improvements in the vicinity. Discussion: The variance is to a front yard setback which is adjacent to the easterly neighboring parcel. Because the adjacent home is set back a substantial distance and the adjoining yard area is a level pad substantially lower in elevation, the visual impact of the reduced setback is minimal. Recommendation: Staff recommends that the City Council direct staff to prepare a resolution approving the variance to allow the front yard to be reduced from 35 feet to 8 feet in that the necessary findings are present to grant such variance. Step en 'EimqAlie Planning Director Attachments SE /dsc 4 ra � e o 13777 FRUITVALE AVENUE • SAR:- TOC3A. (:ALIFORNIA 95070 (408) 867 -3438 November 29, 1989 Mr. Ira Velinsky P.O. Box 93 E1 Granada, California 94018 Dear Mr. Velinsky: COUNCIL MEMBERS: Karen Anderson Martha Clevenger David Moyles Donald Peterson Francis Stutzman We have received your application for an appeal of variance denial for a house at 15839 Hidden Hill Road. This matter has been set for the City Council meeting of December 20, 1989. Please be advised that the City Council will allow ten minutes for your presentation on this appeal. The hearing is "de novo," which means that any relevant issue for or against your appeal may be considered, whether or not it was considered by the Planning Commission and regardless of whether the Planning Commission approved the application. Please let me know if you have any questions. sincerely, 1r Grace E. Cory Deputy City Clerk ,/Cc-: Planning Department J I Name of Appellant: Address: Telephone: Name of Applicant: Project File No.: Project Address: Project Description: Date Received:// ?-J11 i Hearing Date: 1112-o p� Fee ;Vo l-CC CITY USE APPEAL APPLICATION 7-1;71-11 G777 Decision Being Appealed: vrp���Jy • Grounds for the Appeal (Letter may be attached): Pc t ignature *Please do not sign this application until it is presented at the City offices. If you wish specific people to be notified of this appeal please list them on a separate sheet. TATS APPLICATION. MUST BE SUBMITTED IVTTI-IIN TEN 10) C/ILCPIDAR DAYS O1' 7�II� A' L- U1• fI L• UC�r1�5I0. . w REPORT TO THE PLANNING COMMISSION FROM '.3i6�)hen Emslie DATE: 6-28-89 PLNG, DIR. APPRV. APPLICATION NO. & LOCATION: V -89 -043 15839 Hidden Hill Road APPLICANT /OWNER: Velinsky APN:510 -24 -019 Q N E &1L ZONING: HC -RD GENERAL PLAN DESIGNATION: RVLD PARCEL SIZE: 47,154 sq. ft. (net site area excluding access corridor. AVERAGE SITE SLOPE: 23% GRADING REQUIRED: Cut: 300 cu. yds. Cut Depth: 2 ft. 220 cu. yds. Fill Depth: 5 ft. MATERIALS AND COLORS PROPOSED: EXTERIOR: Horizontal siding, grey -brown and grey tiles; ROOF: Composition shingles. PROPOSED LOT COVERAGE: 18% (8,542 sq. ft.) HEIGHT: 23 ft. SIZE OF STRUCTURE: 4,824 sq. ft. SETBACKS: Front: 8 ft. Rear: 110 ft. Right Side: 20 ft. Left Side: 88 ft. CODE REOUIREMENT/ALLOWANCE 25% (11,789 sq. ft.) 26 ft. 5,142 sq. ft. Front: 35 ft. Rear: 50 ft. Right Side: 20 ft. Left Side: 20 ft. PROJECT DESCRIPTION: The applicant is seeking the Commission's approval of a single variance for a reduced front yard setback. The plans show an 8 ft. setback from the front property line where 35 ft..is the minimum required by City Ordinance. The remaining setbacks, sides and rear conform to City standards. Since the plans were last reviewed by the Planning Commission at its October 25th public hearing, several major changes were re- quired by the Council. The most recent plans can be summarized by the following: 1. The site plan has been revised to eliminate encroachment into the 20 ft. northerly side yard setback. An architectur- al feature including a porch overhang and column extends 3 ft. into the setback which is a permitted side yard encroach- ment. 2. The three car garage has been reduced to a two car garage. Although the building is still 8 ft. from the front property line, there is now 18 ft. of open space between the garage and the property line. 3. A parking and turnaround area on the lower portion of the site adjacent to the access corridor has been eliminated. 1 4. The pool within the northerly side yard has been deleted. 5. The site plan indicates that the proposal is above the 660 foot elevation nearest the southerly property line, and extends over the 660 foot elevation nearest the northerly property line. FINDINGS: Since the Planing Commission is very familiar with the site conditions having previously considered and approved devel- opment of this site, this report will focus on the existence of required findings to grant the front yard setback variance. For reference purposes, recent Planning Commission and City Council minutes are attached for the Commission's convenience. 1. Exceptional Physical Circumstances: Staff finds that the presence of a ravine which bisects the property greatly re- stricts the buildable portion of the site. 2. Special Privileges: Staff concludes that the granting of the variance will not constitute the granting of special privileges since the proposed development is within the size range of surrounding neighborhood homes. 3. Detrimental to Surroundings: Because the residence adjacent to the encroachment is considerably lower than proposed construction and is separated by a substantially level set back area, the encroachment's impact is greatly reduced. Further, the encroachment to the north has been eliminated which reduces the visual impact of the proposed structure from the valley floor. Lastly, two ordinance size trees required to be removed will be replaced with suitable size and number of trees after construction is complete as condi- tions of this variance approval. RECOMMENDATION: Staff recommends that the Planning Commission consider granting the variance by adopting Resolution V -89 -043. ATTACHMENTS: 1. Resolution V -89 -043 2. City Council Resolution 2598.1 3. Previous Staff Reports & Minutes 4. Plans, Exhibit A 2 RESOLUTION NO. V -89 -043 CITY OF SARATOGA PLANNING COMMISSION STATE OF CALIFORNIA VELINSKY - 15839 HIDDEN HILL RD. WHEREAS, the City of Saratoga Planning Commission has re- ceived an application for variance approval of a front yard setback. WHEREAS, the Planning Commission has conducted a duly no- ticed public hearing at which time all interested parties were given a full opportunity to be heard and to present evidence; and WHEREAS, the applicant has met the burden of proof required to support his said application, and the Planning Commission makes the following findings: A'strict or literal interpretation of the Zoning Ordinance would result in practical difficulty or unnecessary physical hardship inconsistent with the objectives of the Ordinance in that the property is bisected by a ravine which restricts the buildable area necessitating the granting of a variance in order to con- struct a residence which does not adversely impact this natural landform. Exceptional or extraordinary physical circumstances exist that are applicable to the property involved or to the intended use of the property which do not apply generally to other properties in the same zoning district in that the usable building pad is located in the extreme no corner of the site which greatly limits the area suitable for building a residence that conforms with City setback standards. Strict or literal interpretation and enforcement of the specified regulation of the Zoning Ordinance would deprive the applicant of privileges enjoyed by owners of other properties classified in the same zoning district in that other owners of properties in the HC -RD zone district are permitted to construct single family homes on portions of their properties not constrained by topo- graphic features such as a ravine. Granting the variance will not be detrimental to the public health, safety or welfare, or materially injurious to properties of improvements in the vicinity in that the residence nearest the front yard encroachment is substantially below the subject property and is separated by a large level setback area which minimizes visual intrusion to this adjacent property. Further, landscaping to be removed by the proposed construction will be replaced by the applicant by condition of this variance approval. NOW, THEREFORE, the Planning Commission of the City of Saratoga does hereby resolve as follows: 3 Section 1. After careful consideration of the site plan, architectural drawings, plans and other exhibits submitted in connection with this matter, the application of Ira Velinsky for variance approval by and the same is hereby granted subject to the following conditions: 1. All conditions contained in the Resolution No DR -89 -013 are hereby incorporated herein by reference and shall remain in full force and effect. 2. In accordance with conditions of DR -89 -013, the applicant shall include appropriate landscape material in the required landscape plans to compensate for the removal of the two ordi- nance size trees. Section 2. Applicant shall sign the agreement to these conditions within 30 days of the passage of this resolution or said resolution shall be void. Section 3. Construction must be commenced within 24 months or approval will expire. Section 4. All applicable requirements of the State, Coun- ty, City and other Governmental entities must be met. 5. The applicant shall affix a copy of this resolution to each set of construction plans which will be submitted to the Building Division when applying for a building permit. 6. Unless appealed pursuant to the requirements of Article 15 -90 of the Saratoga City Code, this resolution shall become effective ten (10) days from the date of adoption. PASSED AND sion, State of following vote: AYES: NOES: ABSENT: ADOPTED by the City of Saratoga Planning Commis - California, this 28th day of November, 1989 by the Chairman, Planning Commission ATTEST: Secretary, Planning Commission The foregoing conditions are hereby accepted. Signature of Applicant Date 4 RESOLUTION NO. 2598.1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA CONCERNING DR- 89-013 WHEREAS, on October 4, 1989, the City Council adopted Resolution No. 2598, reversing a decision of the Planning Commission granting design review approval on the application by Ira Velinsky and Mayumi Velinsky ( "the applicants ") to construct a single family residence upon the site located at 15839 Hidden Hill Road, such application being identified as DR -89 -013; and WHEREAS, the application was referred back to the Planning Commission to consider various modifications to the project, as described in Resolution No. 2598; and WHEREAS, such modifications were reviewed by the Planning Commission at a public hearing conducted on October 25, 1989, and following the conclusion thereof, the Planning Commission submitted a written report to the City Council signed by the Commission Chairman on October 27, 1989; and WHEREAS, the application was again considered by the City Council at its regular meeting on November 1, 1989, at which time any person interested in the matter was given an opportunity to be heard; and WHEREAS, the City Council reviewed and considered the report from the Planning Commission, the staff reports and the written and oral evidence presented to the City Council in support of and in opposition to the revised application for design review approval, NOW, THEREFORE, the City Council of the City of Saratoga, at its meeting on November 1, 1989, by a vote of 3 -2, with Councilmembers Moyles and Stutzman dissenting, did resolve as follows: 1. The design of the project shall be modified to eliminate the lower parking turnaround area and reduce the garage from 3 to 2 car, as shown on the drawings attached hereto as Exhibit "A" and incorporated herein by reference. 2. The driveway to the lot shall be constructed entirely within the boundaries of the recorded access easement, as opposed to the access corridor of the flag lot. 3. The pool has been deleted from the plans and no longer constitutes a part of the design review application. 4. The applicants will be required to apply for a variance to allow modification of the front yard and side yard setback requirements. All application fees for such variances shall be waived. s s s -1- The above and foregoing resolution was passed and adopted at a regular meeting of the City Council of the City of Saratoga held on the 15th day of November, 1989, by the following vote: AYES: C.ouncilmmnbers Anderson, Moyles, Peterson, Stutzman and Mayor Clevenqer NOES:. Nome ABSENT: None 'Mayor ATTEST: City Clerk -2- ^0-1Ee LL LL 6�-�Plv-v II 11-1111 O-n�--r II —I,- xirvr 5l✓ u ,rrnr✓ u PLANNING COMMISSION CITY OF SARATOGA, CALIFORNIA MINUTES DATE: November 25, 1989 PLACE: Community Center, Arts & Crafts Room, 19665 Allendale Ave. TYPE: Adjourned Regular Meeting --------------------------------------------------------------- - - - - -- Roll Call: Chairperson Siegfried, Commissioners Moran, Harris, Burger, Absent: Commissioner Tappan 1. V -89 -043 - Velinsky, 15839 Hidden Hill Rd., Planning Commission review of a variance to allow an eight foot front yard setback where a 35 ft. setback is required to allow the construction of a 4,824 sq. ft. single family residence in the HC -RD zone district per Chapter 15 of the City Code. The Planning Director, Stephen Emslie, presented the staff report and explained that staff was able to find extraordinary condi- tions related to the topography that justified granting the variance. He also reviewed the design review application. Ira Velinsky, applicant presented the revised plans and requested that the Planning Commission grant approval. Curt Anderson, architect for the applicant explained the setbacks to property lines. He pointed out that the encroachment into the northerly side yard was eliminated by incorporating the Council's requested changes. Wanda Alexander, 15879 Ravine Road, Los Gatos requested clarifi- cation of actual property lines and the location of staking on the site. She stated that the relocation requested by Council did not correspond to the building outline shown on the site. Ms. Alexander felt that granting the variance was unfair to the neighborhood because it allowed a house larger than those in the neighborhood. She also stated that this was the Planning Commis- sion's last chance to limit the size of the home and bring the size down to a point where a variance will not be required. Arthur Slemmons spoke in reference to the Saratoga Planning Director who spoke before the County Board of Supervisors to object to the granting of a similar variance in the area. He stated that the variance should not be approved because there was no hardship. Richard Sogg, 19262 Hidden Hill Road, spoke in regard to CC &R conditions which limit the amount of grading and building setback encroachment. The Planning Commission responded by stating that CC &R's are private agreements that are not enforceable by the City. 1 Robert Sturgis, attorney representing the neighbors, questioned the finding of practical hardship. He felt that the house was too large and was not a definable hardship. His opinion was that the applicant should reduce the size of the home because it was too large. He stated that Saratoga should adhere to the strict application of its ordinances and not grant the variance. He questioned the equity of the variance because it was not neces- sary in order to promote equity in the neighborhood. Curt Anderson, architect for the applicant, spoke to the efforts the Velinsky's have taken to fit the home into the neighborhood. The public hearing was closed by order of the Chairman. Commissioner Harris asked about the process and the applicant's right to appeal. The Planning Director stated that any decision of the Commission was appealable to Council. She stated she had difficulty in making the variance findings because it would be a grant of special privileges. Commissioner Burger inquired about the Planning Commission's initial approved design review in comparison to the plans cur- rently before the Commission. The Director then provided a comparison of the former plans approved by the Planning Commis- sion and the variance currently requested. Commissioner Tucker felt that the project redesign and the vari- ance was not necessary as she was unable to make the required variance findings. Commissioner Kolstad stated that he recently visited the site and did not see the need for concern. He felt that the plans have been overscrutinized and that the City was being too extreme. He felt that the original plan was acceptable and that the revised plan was acceptable. He did not see what all the fuss was about. Commissioner Burger stated that she was previously unable to make variance findings and now even though it was very painful for her, she cannot vote to approve the variance. Chairman Siegfried stated that he felt that the site was very unusual due to its topography. He felt that the findings were present to grant the variance. Commissioner Kolstad moved and Chair Siegfried seconded a motion to approve V -89 -043. Ayes: Commissioners Kolstad, Siegfried Noes: Commissioners Tucker, Harris, Moran and Burger Absent: Commissioners Tappan The motion failed 2 -4. 2 Commissioner Harris moved and Burger seconded to deny V -89 -043. Ayes: Commissioners Tucker, Harris, Moran and Burger. Noes: Commissioners Kolstad & Siegfried. Absent: Commissioner Tappan The motion carried 4 -2. Motion to adjourn the meeting carried 6 -0. 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AATCH LINE (SEE INSERT [[0 LEFT FOR ORIVEWAT /RNIpDEN POLL RO0� �� RON K t AS RED, C r)T TO ER IDI \ RSTALL CURS ON DOWRKILL SIDE. , 1- �o 1� <e VICINITY MAP �L..... �. 111 _.500' L B \I . . tam SITE AM 1`268 AC 1 MOSS I AVERAGE LOT $WIFE 23X IATESAGE SLOPE AT NUMIM SITE : i % EXCAVATION i0I C.T. ' 2 VAX- DEPTS TILT• fro G.T. f MAX. DEM t E G E S D 1 3 - PROPOSED CONTOM ' EXISTING CONTOURS FIIO -so RFTALSING L'ALL (DESLOW ST OTSELS) BEXISTING TREE O �7( MSTTNC TREE TO BE MOVED r.T.Y PROPOSED FINISRED FLOOR P FROMM FAD ELEVATION C.I. PROPOSED CAIAGE FLOOR ELEVATION S.S. PROPOSED TOP OF NALL PIOPOSEI DIIAISAGL fs:AL[ �T rROroSED DLAIMGE DIlECTIOY ••••••........ « » » -. PROPOSED DATUM LINE • —N ---11 9 — FROMM PLAIN LIST an INLET r r N T = E1 I Y. a 9 �a 08 ids 4 SARATOGA CITY COUNCIL EXECUTIVE SUMMARY NO. / -1 AGENDA ITEM L� MEETING DATE: December 20, 1989 CITY MGR. APPROVAL ORIGINATING DEPT: Community Services SUBJECT: Transfer of Cable Televsion Franchise From Hearst Cablevision to Brenmor Cable Partners Recommended Motion: Adopt Resolution authorizing the Mayor to sign the attached Assumption Agreement conditionally transferring the Saratoga cable television franchise from Hearst Cablevision of California to Brenmor Cable Partners. Report Summary: Hearst Cablevision of California is dissolving due to the decision of the Hearst Corporation to get out of the cable television system operating business. Toward that objec- tive, the Hearst Corporation is selling all of its cable televi- sion franchises to Brenmor Cable Partners conditioned on City Council approval of the franchise transfers. Staff was initially concerned that Brenmor Cable Partners was a relatively new cable company without much of a track record, and that Brenmor's parent company, InterMedia Capitol Management (ICM) relied heavily on the financial resources of its limited partners for its operating capital. However, both Brenmor and ICM have subsequently demon- strated their financial and personnel capabilities to operate the Hearst Cable systems they are purchasing. Although a request to transfer a franchise does not constitute grounds to negotiate new franchise provisions, both Hearst and Brenmor have made a number of considerable concessions condi- tioned on City Council approval of the Transfer in December, which are the substance of the attached Franchise Assumption Agreement. The more significant of these include the following: A) A commitment to negotiate for a new franchise including a plan to substantially upgrade the existing system to sixty (60) channels by September 1, 1990, even though the company has (and retains) the option to extend the existing franchise to late 1997, pursuant to the original Franchise Agreement approved in 1978. B) A procedure for conducting a technical audit of the CATV system if there is evidence of a failure to perform, at the cable company's expense up to a maximum of $5,000. C) A requirement to survey CATV subscribers not less than every other year beginning May 1, 1990, to determine customer satisfaction with company performance, and report the survey tabulations, findings, and company responses to the City. Page 2 D) A commitment to keep Saratoga's community access channel on Channel 6. E) A commitment to reduce the level of subscriber complaints to meet standards identified in the Agreement, and report monthly to the City of their progress toward that objective. F) An agreement to abide by a schedule of refunds to subscrib- ers for losses of CATV service (including a full refund of the total monthly fee if the service is lost for three (3) or more consecutive days). G) An agreement to pay the City fines and penalties for exces- sive CATV service losses and other failures to abide by the franchise terms and conditions. H) An agreement to cable the City Council Chambers so that Council meetings can be televised live, up to a maximum of $8,000. I) An agreement to provide the City a total of $60,000 ($30,000 from Hearst and $30,000 from Brenmor) for the purchase of local community access television equipment. J) A commitment to provide cable television service to a major established subdivision in the City involving sixty -eight (68) homes (known as the "Brandy- Wine" area) which do not meet the current minimum density standards identified in the Franchise Agreement. K) An agreement to pay the City a non refundable $5,000 trans- fer fee should the company ever request another transfer of the franchise in the future. Staff feels that both Hearst and Brenmor have offered some major concessions in consideration of the transfer which go far beyond the requirements associated with such a request, and therefore recommends approval of the transfer. Brenmor will be doing business as South Bay Cable. Fiscal Impacts: An additional $60,000 restricted to the purchase of local origination /public access video production equipment; unknown amounts of revenue in the form of fines to the City should the cable operator fail to perform under the terms of the Franchise or Assumption Agreements. Attachments: 1. Resolution authorizing the Mayor to sign Agreement 2. Franchise Assumption Agreement `w Page 3 3. Letter from Hearst dated 12 -13 -89 agreeing to match Bren- mor's donation of $30,000 with an additional $30,000 for the purchase of local access television production equipment. 4. Letter dated 9 -25 -89 from InterMedia to City explaining relationship between companies associated with the Brenmor cable system, without attachments 5. Letter dated 10 -11 -89 from InterMedia to City, further explaining company organization, finances, and roles without attachments 6. Letter dated 11 -8 -89 (same as above), with attachments Motion and Vote: NESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARA-TOGA APPB.OYIIIG ASSIST OF TEE F$AI GL= FOR CABLE TE EATON NICE TO BRENMOR GABLE PARTNERS WHEREAS, on August 3, 1977, the City adopted Ordinance Ito. 38.79 granting a franchise to Video sneering, Inc- to construct, operate and maintain a cable television system within the City of Saratoga; and EAS, Section 4- 207(d) of the Saratoga City Gode provides that no assignment of the cable television franchise can be made without the prior consent of the City Council expressed by resolution, and then only under such conditions as prescribed by the Council; and W " EKF.AS, by Resolution No_ 2259 adopted by the City Council on July 17, 1985, the Council approved an asst- g,=ent of said franchise by Video Engineering, Inc_ to Hearst Cxblevision of California, Inc- (''Hearst Cablevision"); and WIDUREAS, Hearst Cablevision now desires to assign and transfer all of its right, title and interest in and to said franchise to Brenmor Cable Partners, L.P., a California limited partnership (nSrennzorn); and WHffiEAS, the proposed assignment and transfer by Hearst Cablevision to Brenmor will be made pursuant to the terms and conditons of a certain nCATV Franchise Assumption Agreement,- a copy of which is attached hereto as Exhi-bit "A'' and incorporated herein by reference; and WA$. the City Council finds and determines that it would be in the best interests of the City and the subscribers to the cable television service that the proposed transfer of the franchise be approved, NOW, TBIDREFORE, be it resolved by the City Council of the City of .Saratoga as follows: -I- I. The proposed asmept and transfer of the cable television franchise by Hearst Cablevision to Brenmor is hereby approved. 2. The form and content of the CATV Franchise Assumption Agreement attached hereto as Exhibit "Aft is hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute said Agreement on behalf of the City. s * s Passed and adopted at a regular meeting of the City Council, of the City of Saratoga held on the 20th dap of December, 1989, by the following vote: AYES: NOES: ABSENT: ATTEST: City Clerk -2 'Mayor r ib 12/14 %89 11:46 $ 408 727 5295 HEARST CABLE. 02 ur UMLI rUKIN I H W. Gene Musselman Lxccutive Vice President December 13, 3,989 Chief Operating Otficer Todd Argow muniky ervices Director ci of/ ratoga 1377 tvale Ave. Saratoga, A 95070 Dear Todd: Enclosed is a copy of the CATV Franchise Agreement with the changes that were requested. With all due respect, 1 believe, that your negotiations on behalf of the City of Saratoga accomplished what you set out to do, i.e., build into the Franchise Agreement protection for Saratoga cable subscribers, provide for greater control by the City over future transfers, and to secure funds for public educational and government access. All of these objectives were accomplished and are provide for as follows: 1) Should reasonable evidence exist that the cable system is not performing as it should, operator is required to perform tests and submit satifactory evidence to the City that no inadequacies exists. 2) Right of the City to levy fines, sanctions and penalties relative to inadequate performance. 3) Agreement by operator to maintain a level of subscriber complaints not to exceed specified levels. 4) The establishment of conditions precedent to future transfer or change in control of the franchise. 5) cabling of city Council chambers up to_ a cost of $8.,000. 6) Payment by Hearst and Brenmor of a total of $60,000 for purchase of Local Origination /Public Access equipment. 7) Extension of service to approximately 70 homes previously without cable service. 8) Establishment of a non -- refundable transfer fee to be paid to the City in conjunction with any future transfers of the franchise. 2700 SCO1 T ROUI FVAno. SAN I A UAHA. (�A 9VISO (408) 727 -3900 12.14 %99 11:47 g 409 727 5295 HEARST CABLE _ 03 It Todd Argow December 13, 1989 Page Two The list above is not intended to be all inclusive but simply summarizes the major concessions made by Hearst and Brenmor in our negotiations to transfer the cable television franchise. Thank you for your cooperation and many thanks for your friendship these past years. sincerely, W. Gene �Musselman Executive Vice President Chief operating Officer WGM:ml Enclosure This AGREEMENT, which becomes effective upon execution by the parties, is made and entered into this . day of December, 1989, by and between the CITY OF SARATOGA, a municipal corporation of the State of California (CITY), HEARST CABLEVISION OF CALIFORNIA, a Delaware corporation ( HEARST), and BRENMOR CABLE PARTNERS, L.P., a California limited partnership (BRENMOR) consisting of HERNANDEZ COMMUNICATIONS, INC., a Colorado corporation, its general partner (HCI, and INTERMEDIA PARTNERS, a California limited partnership (IM), its limited partner, collectively referred to herein as GRANTEE. Pursuant to the provisions of Article 4 -25 of the Saratoga Municipal Code, and Ordinances No. 38.79 and 71.36 and Resolution No. 2251, CITY, HEARST and GRANTEE do hereby agree that GRANTEE shall be substituted in the place and stead of HEARST as the GRANTEE for the purposes of operating, constructing, installing and maintaining a cable communications system (System) within CITY, with the following additional terms and conditions: 1. Assignment. HEARST does hereby fully transfer and assign all of its rights, title and interest under said franchise to GRANTEE, thereby retaining and reserving no rights, title and interest against CITY. 2. Waiver_ and Disc rqe by Heax . HEARST does hereby waive and relinquish any and all claims, demands, actions or causes of action it may have against CITY arising out of or in any way connected with said franchise agreement or any other matter. HEARST represents that there is presently no suit, action, administrative proceeding, arbitration, or other proceeding pending with respect to the System or franchise. It is expressly understood that this Agreement constitutes a waiver and discharge of all claims arising out of the relationship between CITY and HEARST. It is expressly agreed that all rights under Section 1542 of the California Civil Code are expressly waived. 3. Assumption__ bX___GRANTEE. GRANTEE does hereby expressly and unreservedly agree to assume and fully perform all of the duties and obligations required of GRANTEE under said franchise agreement, as herein modified. - 1 - 4. Warranties by GRANTEE. GRANTEE does hereby warrant and promise that it possesses superior experience, character, and background including, but not limited to, financial, legal, and technical abilities and resources required to operate, construct, install, and maintain the System in the CITY. GRANTEE further warrants that it is duly organized, validly existing, and in good standing under the laws of California, and has the power and authority to enter into this Agreement and to carry out the transactions contemplated hereby. 5. Severability. If any term, covenant, condition, or provisions of this Agreement or the application thereof to any person or circumstances is, to any extent, invalid or unenforceable, the remaining terms, covenants, conditions, and provisions of this Agreement, or the application of such term, covenant, condition, or provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition, and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law. 6. Change in Enabling Law. The parties agree that if during the term of this Agreement, any changes in any state or federal case or statutory law expand the CITY's power to regulate GRANTEE under said franchise agreement, the parties shall in good faith negotiate regarding amendments to the franchise agreement as authorized by any such law. 7. Insurance, Deposits, Bonds. Upon closing of the sale, GRANTEE shall deliver to CITY proof of compliance with all insurance, deposit and bonding requirements of Resolution 2259 and Article 4 -25 of the Municipal Code. HEARST represents that it has fully complied with such requirements up to and including the date of the closing. 8. Franchise Renewal. Both parties to this Agreement hereby agree to initiate franchise renewal negotiations by September 1, 1990, in anticipation of the franchise expiration on September 3, 1992. GRANTEE agrees to submit to CITY a plan to expand the channel capacity of the system to 60 channels (450 MHz of bandwidth). Both parties agree to negotiate for such system expansion in good faith. 9. Consumer Protection. A. Audit of Alleged Inadequate Performance. If at any time, after a public hearing before the City Council with at least thirty (30) days' notice to GRANTEE, GRANTOR determines that reasonable evidence exists that the System is not operating in accordance with required technical specifications, it may require GRANTEE to perform tests and analyses directed toward such suspected inadequacies. GRANTEE shall fully cooperate with GRANTOR in performing such testing and shall prepare results and a report, if requested, within thirty days after notice. Such report shall include the following information: - 2- (1) The nature of the complaint or problem which precipitated the special test. (2) What system component was tested. (3) The equipment used and procedures employed in the test. (4) The method, if any by which such complaint or problem was resolved. (5) Any other information pertinent to said tests and analyses which may be required to ensure compliance with Section 4- 25.210 of the Municipal Code. (6) GRANTOR may hire a consultant to supervise the foregoing tests, review their results, and advise GRANTOR of his findings. If the findings of the independent consultant establish inadequate system performance, GRANTEE shall reimburse GRANTOR or the costs of hiring the consultant, including the costs of verifying compliance with any recommended corrective measures, up to a maximum of $5,000 (1) Regular, bills for service shall be rendered monthly, unless changed with at least sixty (60) days notice to the customer, or unless service is rendered for a period of less than one (1) month. Bills shall be rendered as promptly as possible. All bills shall contain a telephone number and a mailing address for billing inquiries or disputes. (2) At the time of connection to service, subscribers will be notified of the procedures used by GRANTEE to resolve billing disputes. C. Quality of Service. The quality of GRANTEE's service refers to the services associated with day -to -day interruptions of service; disconnection; rebates and credits; signal quality; and the provision to customers or potential customers of information on billing or services. In order to assess the quality of service, GRANTEE shall survey all subscribers at least once every other calendar year, beginning May 1, 1990. This shall be accomplished as follows: The GRANTEE shall also include along with this same bill a statement that the survey has been sent to each subscriber as part of the biannual quality of service assessment required to be conducted by GRANTOR: that quality of service refers to GRANTEE's response to customer complaints; billing; interruptions of service; disconnection; rebates and credits; signal quality; the provision to customers or potential customers of information on billing or services; that if they provide their name and telephone number they may be contacted for additional - 3 - information. As an alternative to the summary, actual responses may be submitted to the GRANTOR at the GRANTOR's request. Should GRANTOR make such a request, GRANTOR will be subject to the same time considerations as GRANTEE, and will submit a summary to the GRANTEE in a form like that previously produced by the GRANTEE. D. Level of Subscriber Complaints. (1) GRANTEE's assumption of this franchise shall constitute an agreement by GRANTEE to maintain a level of subscriber complaints not to exceed the standards hereinafter described. The total percentage of monthly subscriber complaints from within the City of Saratoga, out of the total number of Saratoga subscribers, shall not exceed: (a) 4.4% during calendar year 1990. (b) 4.0% during calendar year 1991. (c) 3.8% during calendar year 1992. (d) 3.6% during calendar year 1993. Complaints will include, but are not limited to, problems associated with quality of reception, service problems and loss of service. Specifically excluded from complaint calculations will be those complaints which are ultimately found to be the result of customer -owned and /or installed equipment, acts of God, and, in addition, other such problems as may be determined by the GRANTOR to be beyond the GRANTEE's control. In the event GRANTEE fails to meet the standards as herein above stated for three (3) consecutive months, GRANTEE may be found to be in default of this Agreement, and may be subject to the penalties and remedies as hereinafter identified in Section F below. GRANTEE (2) To determine compliance with this section, shall provide GRANTOR with a monthly report identifying the number constitute that month. attention c (10th) day the format provide sa violation c GRANTOR, be of subscriber complaints and the percentage they out of the total subscriber base within the City of Said report will be due to GRANTOR, to the f the Community Services Director, on the tenth following the preceding month, and shall be done in as identified in Attachment B. Repeated failure to id report when required constitutes a separate f this Agreement, and may, at the option of the subject to the fines set forth below in Section F. - 4 - 1. E. Remedies for Franchise violations. (1) GRANTEE shall be subject to the provisions of this paragraph for any material breach of the ordinance or franchise agreement unless said breach is caused by events beyond the control or GRANTEE. Examples of events beyond the control of GRANTEE are strikes, acts of God, earthquakes, hurricanes, tornadoes, lightning, loss of electrical power to its equipment, electrical interference caused by third party equipment, and similar such events. (2) Subject to the procedures hereinafter set forth, if the GRANTEE fails to perform any material obligation under the franchise or fails to perform a material obligation in a timely manner, the GRANTOR may, at its option: (a) Assess against the GRANTEE the following monetary sanctions: 1) If the system has less than five thousand (5,000) subscribers, two hundred fifty dollars ($250.00) for each day the violation continues. 2) If the system has more than five thousand (5,000) subscribers, five hundred dollars ($500.00) for each day the violation continues. have materially GRANTOR may di subscriber whose such violation, otherwise charged (b) In the event such violation shall degraded the quality of service to subscribers, rect GRANTEE to issue as a credit to any service has been interrupted as a result of in the following percentages of the monthly fee to said subscribers: 1) 24 consecutive house: 5% rebate of the monthly fee; 2) 24 to 48 consecutive hours: 15% rebate of the monthly fee; 3) 48 to 72 consecutive hours: 25% rebate of the monthly fee; 4) Greater than 72 consecutive hours: 100% rebate of the monthly fee. Notwithstanding the foregoing, in no event shall GRANTEE be required to credit to any one subscriber any more than the equivalent. of 100% of the monthly fee in any calendar year; and, further provided that no such rebate shall be required where the incident in question has occurred more than sixty (60) days prior to the violation which is the subject of this Subsection. - 5 - (c) Terminate the franchise, as provided in Article 4- 25.060 of the Saratoga Municipal Code. (3) The sanctions set forth in this paragraph are subject to the following procedures. (a) The City Manager must notify GRANTEE in writing by Certified Mail, Return Receipt of the exact specifics of the alleged violation of the ordinance and /or franchise agreement. (b) Upon receipt of the notice described in subparagraph (a) directly above, GRANTEE shall have thirty (30) days to cure said alleged violation, or state, in writing, why it believes the allegations of violations are incorrect or, a combination thereof. (c) If the alleged violations are not cured in the reasonable opinion of the City Manager, or, if the statement submitted by GRANTEE is not dispositive of the allegations of violations in the reasonable opinion of the City Manager, then the City Manager may refer the matter to the City Council for a full hearing on thirty (30) days written notice to GRANTEE. (d) After a full hearing, giving due opportunity to GRANTEE to present its arguments fully and the City Council shall issue its decision in writing setting forth a detailed explanation of its findings of fact and the reason for its conclusions. 10. Transfer of Ownership or Control. In addition to the change of ownership provisions set forth in Section 4- 25.080(d) of the City's Municipal Code: A. The GRANTEE shall promptly notify the GRANTOR of any change in, or transfer of, or acquisition by any other party of, control of the GRANTEE. The word "control," as used in this section, is not limited to major stockholders but includes actual working control. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or transfer by any person or group of persons of ten percent of the ownership interest of the GRANTEE. Every change, transfer of, or acquisition of control of the GRANTEE shall make the franchise subject to cancellation unless and until the GRANTOR shall have consented thereto, which consent will not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, in transfer of, or acquisition of control, the GRANTOR may inquire into the qualifications of the prospective transferee party, and the GRANTEE shall assist the GRANTOR in any such inquiry. B. In seeking the GRANTOR's consent to any change in, transfer of, or acquisition by' any other party or control of GRANTEE, the GRANTEE shall have the responsibility: (1) To show to the satisfaction of the GRANTOR whether the proposed purchaser, transferee, or assignee (the "proposed transferee "), which in the case of a corporation, shall include all officers, directors, and all persons having a legal or equitable interest of twenty -five percent or more of its voting stock. And, in the case of a partnership shall include all general Partners and any Limited Partners holding twenty -five percent or more of the Partnership interest. (a) Has ever been convicted or held liable for acts involving moral turpitude. (b) Has ever had a judgment in an action for fraud, deceit or misrepresentation entered against it, her, him or them by any court of competent jurisdiction. (c) Has pending any legal claim, lawsuit or administrative proceeding arising out of or involving a cable system. (2) To establish, to the satisfaction of the GRANTOR, the financial solvency of the proposed transferee by submitting such reasonable_ financial data for the proposed transferee as the GRANTOR may request. (3) To establish to the satisfaction of the GRANTOR that the financial and technical capability of the proposed transferee is such as shall enable it to maintain and operate the cable system for the remaining term of the franchise under the existing franchise terms. C. The GRANTOR agrees that any financial institution having a pledge of the franchise or its assets for the advancement of money for the construction and /or operation of the franchise shall have the right to notify the GRANTOR that it or its designee, satisfactory to the GRANTOR, will take control and operate the cable television system, in the event of a GRANTEE default in its financial obligations. Further, said financial institution shall also submit a plan for such operation that will insure continued service and compliance with all franchise requirements during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year unless extended by the GRANTOR at its discretion and during said period of time it shall have the right to petition the GRANTOR to transfer franchise to another GRANTEE. If the GRANTOR finds that such transfer after considering the legal, financial, character, technical and other public interest qualities of the applicant are satisfactory, the GRANTOR will consent to an assignment of the franchise, which consent shall not be unreasonably withheld. - 7 - D. The consent or approval of the GRANTOR to this or to any other transfer of the GRANTEE shall not constitute a waiver or release of the rights of the GRANTOR in and to the streets, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of this franchise. E. In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the franchise agreement and any amendments thereon imposed as a condition of such transfer. Furthermore, the City Council may require increases in a faithful performance bond in the form prescribed by the city attorney. 11. Community Access Television. A. Channel Assignment. GRANTEE recognizes that Saratoga's Community Access channel has historically existed on Cable Channel 6; and, in light of this fact, GRANTEE hereby agrees that Saratoga's Community Access Channel will remain on Cable Channel 6 throughout the duration of GRANTEE's franchise. B. Cabling of City Council Chambers. In recognition of the valuable public service which would be realized through the televising of City Council Meetings, GRANTEE agrees to make changes to its distribution system and "hard wire" the City Council Chambers so that the meetings held therein can be televised live on the system's community access channel, or on such other channel as mutually agreed upon between GRANTEE and CITY. "Hard wiring" shall include the provision and installation of cable, audio video wiring, outlets, modulators, and other such equipment as may be mutually deemed necessary. Said installation shall allow for the connection of three cameras to controller /switcher. GRANTEE agrees to provide city with a plan for the wiring of the City Council chambers which shall be submitted to City approval. GRANTOR agrees to complete said project within six (6) months of date GRANTOR approves GRANTEE's plan for said installation. This project will be at GRANTEE's sole expense up to $8,000. GRANTEE further agrees to provide reasonable technical assistance to GRANTOR to ensure the successful initial activation of the entire system and televising of the full meeting. C. Provision of Community Access Production Equipment. GRANTEE agrees to provide to the Saratoga Community Access Cable TV Foundation, or to GRANTOR in behalf of said Foundation, $30,000 toward the purchase of the video production equipment to be paid $15,000 within six months of closing and $15,000 within thirteen months of closing. - 8 - 12. Service Extension. GRANTEE agrees to make available cable television service to following streets, collectively aknowneSasenthe l;Burg °n the Area ": "Burgundy Wine A• Burgundy Way B. Chablis Court C. Riesling Court D. Granite Way E. Zinfandel Court F. Pinnacle Court G. Crisp Avenue H. Andrew Court I. Haun Court GRANTEE agrees that said service shall be operating within twelve (12) months of the date the transfer of the franchise to GRANTEE is approved by"CITY. GRANTEE further agrees to CITY with a feasibility report concerning he g Provide television services to those areas closely adjacentstonthatc area defined above, namely: A. Old Oak Way B. Live Oak Way C. Versailles Way D. Puente Way E. Portions of Farwell Avenue F. Oriole Road G. Valley Vista Drive 13. Transfer Fee: Any request for a transfer of ownership or control shall be accompanied by application fee of five thousand dollars a nonrefundable transfer ($5,000). CITY OF SARATOGA, a California Municipal Corporation By: Mayor HEARST CABLEVISION OF CALIFORNIA (dba HEARST CABLEVISION OF SARATOGA) By: President BRENMOR CABLE PARTNERS, a California Limited Partnership By: HERNANDEZ COMMUNICATIONS, INC., the General Partner By: Ray J. Hernandez, President 10 - Cablaw' H arst OF CALIFORNIA w. Gene Musselman Executive Vice President Chief Operating Officer December 13, 1989 odd Argow C un'ty ervices Director City ratoga 1377 tvale Ave. Saratoga, CA 95070 Dear Mr. Argow: Pursuant to our discussion this morning regarding the transfer of the cable television franchise from Hearst Cablevision of California Inc. ( "Hearst ") to Brenmor Cable Partners, L.P. ( "Brenmor "), Hearst hereby agrees to issue to the City a check in the amount of thirty thousand dollars ($30,000) for the purchase of Local Origination /Public Access equipment. This payment is conditioned upon the City Council approving the transfer of the cable television franchise at its Wednesday, December 20, 1989 meeting. Payment will be made by Hearst to the City at the time of the close of the sale. Sincerely, � /1 `�. Gene Musselman Executive Vice President Chief Operating Officer WGM:ml cc: Raymond E. Joslin Ronald S. Diana, Esq. 2700 SCOTT BOULEVARD, SANTA CLARA, CA 95050 (408) 727 -3900 David G. Rozzelle General Partner September 25, 1989 Harold Toppel, Esq. Atkinson & Farasyn P.O. Box 279 Saratoga, CA 94042 Dear Mr. Toppel: INTERMEDIA PARTNERS "If better is possible, then good is not enough" Re: Brenmor Cable Partners, L.P. I am writing to provide you with information concerning the financial qualifications of Brenmor Cable Partners, L.P., the proposed purchaser of the assets of Hearst CableVision of California, Inc., and to discuss, in general terms our operating plans for the Hearst systems. Brenmor and InterMedia Brenmor is a limited partnership composed of two partners: the general partner is Hernandez Communications, Inc. and the limited partner is InterMedia Partners. While each partner will contribute equity to the partnership, it is InterMedia that will contribute the majority of the equity and it is InterMedia ' that will supply the bank financing that will complete the acquisition financial package. At your request, I have enclosed a copy of the Brenmor partnership agreement. InterMedia is a limited partnership formed over a year ago for the sole purpose of acquiring, operating and holding cable television systems. Unlike all other limited partnerships in the cable area, InterMedia Partners is composed only of financial institutions, banks, large corporations and pension funds. There are no individuals holding limited partnership interests in InterMedia. Moreover, InterMedia is an operating fund, as opposed to a financial fund. Each of our limited partners invested with the idea that the acquired properties would be held and operated as long -term investments. In short, we offer the citizens of Saratoga the prospect of stable, financially sound ownership of their cable television system. 2785 Mitchell Drive • Suite 105 • P 0. Box 30600 • Walnut Creek, California 94598 • Tel: (415) 256 -8043 • FAX: (415) 256 -8713 Harold Toppel, Esq. Page 2 September 25, 1989 The limited partners of InterMedia- are as follows: 1. Bank of America 2. The Bank of New York 3. Chrysler Corporation Master Retirement Fund 4. Equitable Life Assurance Society 5. Equitable Variable Life Insurance Company 6. Integrity Life Insurance Company 7. Mellon Bank 8. New York Life Insurance Company 9. Salomon Brothers Holding Company, Inc. 10. Sumitomo Corporation 11. TCI Development Corporation 12. Teachers Insurance & Annuity Association These institutions and the general partner of InterMedia Partners have contracted to provide over $100,000,000 in equity. The limited partners will contribute 99% of the equity and the general will contribute 1%. The total equity, when combined with available debt, will provide the partnership with total acquisition funds far in excess of that needed to close the Hearst transaction. Pursuant to paragraph 7 (d) of the InterMedia partnership agreement, the general partner simply calls, on ten days notice, the necessary equity from the limited partners to complete an acquisition. The actual capital call for the Hearst acquisition will be done at the time of closing on the Hearst properties. The pertinent language of the partnership agreement is as follows: The balance of the capital contributions of the Limited Partners shall be paid in installments on ten (10) days' written notice in the following manner: (i) as the General L Harold Toppel, Esq. Page 3 September 25, 1989 Partner determines is necessary or appropriate for identified purchases of or investments in cable television corporations A copy of paragraph 7 (d) is attached for your review. Finally, please be assured that our limited partners cannot withdraw from their partnership commitment except in very carefully defined circumstances. Pursuant to paragraph 8 of the agreement, copy attached, "A Limited Partner may not withdraw from the Partnership in whole or in part prior to dissolution of the Partnership" unless permitted to withdraw by the general partner, or unless continued participation would result in a violation of law. The general partner of InterMedia Partners is InterMedia Capital Management ( "ICM "). ICM is, itself, a limited partnership. The general partners of ICM are Leo J. Hindery, Jr., Edward M. Allen and David G. Rozzelle. These three individuals, in effect, control ICM and InterMedia Partners. Ed and I explained our qualifications to Todd Argow in our earlier meeting with him. Subsequently, we sent Todd a pamphlet describing the management talent that Brenmor will provide. For your convenience, a copy of the pamphlet is enclosed. Attached hereto is a copy of the August 31, 1989, IP balance sheet and income statement. As explained above, the unique nature of InterMedia significantly reduces the usefulness of these documents. As of the moment, InterMedia incurs ongoing liabilities and pays them. Other than the right to draw the total equity pledged by its limited partners, there are no assets or bank balances of significance. In essence it is the nature of InterMedia's limited partners that assures the financial soundness of InterMedia. As you no doubt noticed, the limiteds virtually represent a "Who's Who" of the cable lending and investment community. The Bank of New York will lead a syndicate of banks which will lend InterMedia the money it needs to acquire and operate the Hearst properties. (The banks have already formally committed to lend InterMedia the funds necessary to do a two -stage closing on the Hearst properties, although it appears that only one closing will occur.) It is likely that all or substantially all of the members of the syndicate will be equity holders in InterMedia. Overall, we believe we have structured a very. tight, sound and imaginative financial package which is unequalled. Finally, let me address one issue which has been raised by Todd -- the role of Tele- Communications, Inc. in InterMedia. TCI is a limited partner with the same rights, privileges and obligations as the other limited partners. Aside from the clear legal Harold Toppel, Esq. Page 4 September 25, 1989 restrictions on TCI's role given its limited partner status, the stature of each of our limited partners precludes any one of them from exerting undue influence on the operation of the partnership. We must be scrupulously fair and we will be. Although I am certain you understand the legal limitations imposed on our limited partners when it comes to the management of the Hearst properties, enclosed is a letter from Gregg Vignos, our business counsel, which confirms that our limited partners will have no right to interfere with the management of the Hearst properties. Operating Plans Ed Allen and I have already addressed the employees of the Hearst systems and have assured them that their jobs are secure. We do not intend to reduce the number of service representatives, technicians or vehicles. Nor do we plan to reduce office hours, service response time, the system's local origination commitments, or customer relations efforts. Bill Haggarty, the present marketing director for Hearst Cablevision, has agreed to serve as the general manager of the Hearst properties, including the Saratoga system. Bill has been with the system virtually the entire time that Hearst has owned it and has served as Gene Musselman's number two for many years. Given Bill's knowledge of the community and the system, we believe Saratoga will hardly notice the change in ownership. Even the telephone number to the general manager's office will remain the same -- Todd will be able to contact our GM as easily as he now contacts Gene. In short, other than a name change -- probably South Bay CableVision -- the ownership change should be transparent to the system's subscribers. Moreover, we believe we are good enough to improve customer relations and service over time, mindful as we are that Hearst's efforts in those areas will be difficult to top. As for the autonomy of the local manager, Ed and I believe that the local manager is, in essence, the president of his own business. While "corporate" will be involved in annual operating and capital budgets, all of the day -to -day operating decisions will be made by Bill Haggarty. In conclusion, we respectfully submit that InterMedia Partners is clearly qualified to acquire and operate the Hearst cable properties. We offer highly experienced management skills, knowledge of the industry, a commitment to long -term ownership and a financial base of over $100,000,000 in equity committed by partners whose very names assure their ability to perform when asked. Z.. Harold Toppel, Esq. Page 5 September 25, 1989 If you need anything further for the council to consider, please let me know. Very truly yours, David G. Rozzelle General Partner cc: Todd W. Argow (all w /enc) Ray Hernandez Gene Musselman Bill Haggarty 7 David G. Rozzelle General Partner October 11, 1989 Ms. Deborah Acosta Town Manager Town of Los Gatos 110 East Main Street Civic Center Los Gatos, CA 95030 0012 1989 INTERMEDIA PARTNERS "If better is possible, then good is not enough" Sandra Faithfull, Esq. City Attorney City of Milpitas 455 East Calaveras Blvd. Milpitas, CA 95035 Ms. Rosemary Pierce Mr. Paul H.B. Tong Chief Administrative Officer City Manager City of Monte Sereno City of Newark 18041 Saratoga - Los Gatos Road 37101 Newark Blvd. Monte Sereno, CA 95030 Newark, CA 94560 Todd W. Argow Dir f munity Services City o a 13777 Fruitv venue Saratoga, CA 95070 Dear Madames and Sirs: VIA FEDERAL EXPRESS Re: Brenmor Cable Partners, L.P. In anticipation of your meeting of October 13, 1989, and pursuant to a discussion with Deborah Acosta of Los Gatos, I am writing to provide you certain information which may prove relevant to your expressed concerns. 1. Finances. Brenmor and its lead bank, The Bank of New York, have agreed upon the material terms of a loan facility in excess of $100,000,000, but we are still negotiating some of the finer points of the term sheet. When the formal commitment is issued, I will advise you. The Bank of New York (along with the rest of InterMedia's limited partners) has already committed equity to the transaction as well. The loan and equity far exceed the amount needed to close the acquisition. 2785 Mitchell Drive • Suite 105 • P 0. Box 30600 • Walnut Creek, California 94598 • Tel: (415) 256 -8043 • FAX: (415) 256 -8713 October 11, 1989 Page 2 2. Structure. Attached to this letter is a diagram of the structure of Brenmor Cable Partners, L.P. There are two partners in Brenmor: Hernandez Communications, Inc. (Ray Hernandez' personal corporation) is the general partner; InterMedia Partners is the limited partner. The structure is necessitated by the tax code and provides certain tax benefits to the seller of the cable properties -- Hearst. It is likely that Brenmor will be folded into InterMedia Partners in two to three years, leaving only InterMedia and its general partner InterMedia Capital Management. If it is determined to collapse Brenmor, we will, of course, advise you of the plan to do so and, if necessary, will ask your permission for the change even though it could be considered a pro forma restructuring in many ways. 3. Control of Brenmor (the "TCI" Issue -- Part 1). Attached to this letter is a copy of an opinion letter from InterMedia's corporate counsel, Pillsbury, Madison & Sutro, describing the rights of InterMedia's limited partners. Mr. Vignos points out in his letter that the InterMedia agreement expressly provides that, '[t]he Limited Partners shall not take part in the control, management, direction or operation of the business of the Partnership...." (Emphasis supplied). The limited partners have only the right to approve the sale of all or substantially all of the partnership's assets, the dissolution of the partnership, the amendment of the partnership agreement, the admission of a new general partner or the removal of a general partner for cause. As a limited partner in Brenmor, InterMedia, in turn, cannot control or manage Brenmor. A copy of the Brenmor partnership agreement is attached for your review. The Brenmor agreement has been filed with and reviewed by the Federal Communications Commission in Washington, D.c. Thus, the limited partners of InterMedia, including TCI, are separated by law and by two layers of partnerships from controlling the operation of Brenmor's cable properties. The only general partner of InterMedia Partners, as stated in Mr. Vignos opinion letter, is InterMedia Capital Management ( "ICM "). The only general partners of ICM are Leo Hindery, Ed Allen and Dave Rozzelle. If you will recall, biographies of the key players in Brenmor were provided to you earlier in the blue pamphlet we sent along to introduce ourselves. Ed and I, along with the other members of ICM's cable management October 11, 1989 Page 3 team, will provide administrative services to Brenmor pursuant to a. consulting agreement reached with Brenmor. A copy of that agreement is also attached for your perusal. Again, the agreement has been submitted to and reviewed by the FCC. 4. Local Autonomy. A related issue is the structure of the local management and the degree of autonomy that the general manager of the system will have. As stated in the blue pamphlet and as Ray, Ed and I explained to most of you in person, Brenmor intends to place tremendous discretion in the local management of the cable systems. The general manager will be Bill Haggarty. Bill has been the "Number Two" at Hearst since it acquired the cable properties. Bill represents talent, experience, judgment and continuity. He will have the same authority that Gene Musselman presently has to operate the systems. Brenmor intends to do an annual budget, built from the ground up with the assistance of Bill and his department heads. Once the budget is completed, Bill will only come to "corporate" if he wants to deviate from the budget in a material way. As for the other employees of Hearst, Ed and I have met with all of them as a group and asked them to stay and work for Brenmor. The same people will still run service calls, undertake installs and answer the telephones. Aside from the name change (to South Bay CableVision), we are hopeful our subscribers will take little note of the change of ownership. 5. The TCI Issue (Part II). Finally, allow me to address a sensitive issue that concerns some of you -- the fact that Ray Hernandez is associated with TCI and the fact that TCI is a limited partner in InterMedia. As I understand the issue, it is feared that Brenmor is a stalking horse for TCI and that TCI will come in after the approval of the transfer to Brenmor and operate the cable systems. This concern, which is shared by some of you, while logical, is completely unfounded. First, Ray Hernandez is leaving TCI this month. He will devote full time to Brenmor and to his consulting business. As I explained to some of you, it was Ray's experience with acquisitions at TCI and his personal relationship with Ray Joslin, the head of Hearst's cable operations, that started him on the path that led to Brenmor. Moreover, within the scope of his employment at TCI he became familiar with InterMedia because of the Cooke transaction which involved a consortium of six cable companies led by InterMedia (the Cooke deal was widely reported in newspapers at October 11, 1989 Page 4 the time). InterMedia was involved in a tax certificate structure in the Cooke transaction, had already had extensive meetings with the FCC on the proper structure and approach to use and those facts, among others, led Ray to seek InterMedia's involvement in his tax certificated transaction. Therefore, the "coincidence" presented by Ray's relationship with TCI and the fact that TCI is a limited partner in InterMedia are explainable and logical events. Second, a consultant to Milpitas asked that we assure him that no "side agreement" exists with TCI pertaining to the management and control of the cable properties. Logically, of course, we cannot prove the nonexistence of a side agreement with TCI, or any other entity for that matter; therefore, I can only offer you my written statement that no such agreement exists. I can also offer you the logical comfort which should flow from the list of InterMedia's investors. TCI is not the largest corporation to invest in InterMedia -- Sumitomo is. TCI is not the most financially sophisticated investor either. That honor surely belongs to one or more of.the banks and insurance companies who are investors with us. TCI is not the only company in the cable business who has invested with us. Again, Sumitomo is involved in the cable business in Japan. Finally, aside from ICM's legal obligation to treat all of the limited partners in InterMedia equally, the sophistication, integrity and resources of each of our investors should provide you with the comfort that the managers of the fund cannot favor one investor at the expense of any other(s). Finally, while TCI is more than capable of defending itself, we should point out that InterMedia sought out TCI's involvement in the fund; TCI did not approach InterMedia. InterMedia sought out TCI because we suspected that if TCI invested as a limited partner, we could take advantage of the cost savings associated with TCI's master contracts with programmers and equipment suppliers. Once we ascertained that our supposition was essentially correct, we welcomed TCI's investment. We still believe our decision was prudent because it will relieve, to some extent, the upward pressure on cable rates caused by program cost increases which have been substantial and are expected to continue. In short, we thought having TCI as a limited partner would give us an edge in a very competitive marketplace. I apologize for this lengthy letter. I also appreciate that the bulk of the attachments is somewhat daunting. I have tried to be thorough because the meeting 2F October 11, 1989 Page 5 on October 13 presents an opportunity to save Brenmor and your cities a lot of time. This is especially important to Hearst because of the projected closing in early January. As always, if Ray, Ed or I can help you in any way, please do not hesitate to call. cc: Ray Hernandez (all w/o enc.) Ed Allen Leo Hindery Gene Musselman Bill Haggarty Richard Littorno, Esq. Organizational Structure BRENMOR CABLE PARTNE t`' Hernandez InterMedia ommunications,Inc Partners 20% s0% Limited Partner General Partner INTERMEDIA PARTNERS InterMedia Various Institutional Capital Investors Management 1 1% 99% General Partner Limited Partners INTERMEDTA CAPITAL MANAGEMENT Hindery Allen Rozzelle LGen. Partners Various Employees and Professional Advisors Limited Partners EXHIBIT B — INTERMEDIA PARTNERS David G. Rozzelle General Partner "If better is possible, then good is not enough" November 8, 1989 Mr. Todd Argow ''6Qjn mu ity S rvices Director City , ayaf�ga City f�,� 13777 Fruitvale Avenue Saratoga, CA 95070 Re: Brenmor Cable Partners, L.P. Dear Todd: Enclosed, as I promised at our meeting in Los Gatos, is a letter from The Bank of New York indicating that it has committed to lend the money needed (along with equity and some subordinated debt) to acquire the Hearst properties. You will note that the loan facility may also be used by InterMedia to acquire other properties using another limited partnership called Robin Cable Systems, L.P. Our financing is now in place. I am also enclosing an in -house Balance Sheet for Brenmor Cable Partners, L.P. I am hopeful that the formal commitment answers the last of your questions concerning Brenmor's financial qualifications. Based on your contributions to the meeting in Los Gatos, I assume you are fully aware of how the consulting relationship between Hernandez Communications, Inc. and InterMedia operates. Nevertheless, if you have any questions at all, please do not hesitate to call Ed or me. Finally, allow me to say that I am aware of the exchange of correspondence between Hal Toppel and Ron Diana. I believe that Ed and I have always responded quickly, honestly and cordially to any and all requests you have made of us. We advised you of events that affected the transfer (such as the hiring of Bill Haggarty), before they were common knowledge, even within the system itself. I would ask that you consider these actions as evidence of our desire to work with you to provide quality service to the citizens of Saratoga over the next decade. If you are planning to 2785 Mitchell Drive - Suite 105 - P 0. Box 30600 - Walnut Creek, California 94598 - Tel: (415) 256 -8043 - FAX: 1415) 256 -8713 Mr. Todd Argow November 8, 1989 Page 2 advise the City in a negative fashion, I would ask you to give Ed and me a chance to address your concerns with the council members before an agenda item is scheduled. Cordially, ..� 30—Mc �• 1M • David G. Rozzelle cc: Ray Hernandez Gene Musselman 0 THE BANK OF __Ns,EA1�, YOLK NEW YORK'S FIRST BANK - FOUNDED 1784 BY ALEXANDER HAMILTON 530 FIFTH AVENUE, NEW PORK, N.Y. 10036 October 30, 1989 Brenmor Cable Partners, L.P. 235 Montgomery Street Suite 420 San Francisco, CA 94104 The Bank of New York has agreed to act as Agent on a $120 million senior credit facility and has issued a $65 million commitment to Brenmor Cable Partners, L.P. and Robin Cable Systems, L.P. subject to the terms and conditions of the Commitment Letter and Term Sheet dated October 20, 1989. The proceeds of the loan will be used, in part, to acquire cable properties presently owned by Hearst Cablevision of California, Inc. Sincerely, FCaren J. `finder Assistant vice President BRENMOR CABLE PARTNERS L P BALANCE SHEET (Unaudited) i y BRENMOR CABLE PARTNERS, L, P, BALANCE SHEET OCTOBER 12, 1989 (Unaudited) ASSETS Cash $ 1,000 Deferred financing costs 51,000 Deferred investment costs 36,200 88,200 LIABILITIES AND PARTNER'S CAPITAL Payable to limited partner $ 87,200 Redeemable partner's capital 210 Commitments Partner's capital: Limited partner 790 $ 88,200 (See accompanying notes to unaudited balance sheet.) Lei" . • 6 Note 1 - Description of the entity: Brenmor Cable Partners, L.P. (Brenmor) was organized on July 20, 1989 as a California limited partnership. Brenmor has agreed to acquire all of the cable television systems of Hearst Cablevision of California, Inc. (the Acquisition). The Acquisition is scheduled to be consummated in January 1990. InterMedia Partners, a California limited partnership (InterMedia), is the sole limited partner and the owner of approximately 79% of the partnership interests of Brenmor. Brenmor's general partner is Hernandez Communications, Inc., a Colorado corporation (HCI), whose ' principal shareholder is Ray J. Hernandez. Brenmor's partnership agreement provides that the limited partner can purchase the general partner's interest in certain circumstances and in accordance with specified formulae. Furthermore, the general partner can require the limited partner to purchase its partnership interest in accordance with specific guidelines. Note 2 - Summary of significant accounting policies: Basis of accounting Brenmor uses the accrual method of accounting. Deferred financing costs Costs related to financing the Acquisition are recorded as deferred financing costs until the Acquisition is consummated and the related debt is funded, at which time the costs will be amortized over the term of the respective debt instrument. These amounts have been advanced by the limited partner. Such advances do not require interest and will be paid from the proceeds of the financing for the Acquisition. Deferred investment costs Costs related to the Acquisition are recorded as Acquisition is consummated, at which time the the purchase price to the acquired assets. These the limited partner. 2 deferred investment costs until the costs will be allocated as part of amounts have been advanced by SARATOGA CITY COUNCIL EXECUTIVE SUMMARY NO. MEETING DATE: December 29, 1989 ORIGINATING DEPT: Building Department AGENDA ITEM &(� CITY MGR. APPROVAL SUBJECT: Adoption of 1988 Edition of Uniform Building Codes Recommended Action: Second reading and adoption of revised ordinance. Report Summary: The proposed ordinance has been revised to incorporate the changes made by the Council at the time of the first reading on December 6, 1989. Section 16- 15.100 (on page 6) no longer requires the installation of a Class C roof in a non - hazardous fire area. The modifications to Table No. 32 -A of the Uniform Building Code, as contained in the former draft of the ordinance, have now been deleted. Without such local modification, Table No. 32 -A will permit the installation of nonrated roof coverings on single - family dwellings. Except for the changes noted above, the ordinance is the same as originally presented to the Council. Fiscal Impacts: None. Attachments: Proposed ordinance (Rev. 12/8/89) Motion and Vote: Ordinance introduced on December 6, 1989, by a vote of 4 -1, with Councilmember Stutzman dissenting.